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Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running at $400 billion deficit. If households and business are saving $1,000 billion, what is the value of net exports? Use equation T-G = (I + NX) - S to explain your answer.
G =T = Taxes
G = gov't purchases of goods & servicesI = private domestic investmentNX = net exportsS = private savings
Distinguish between private and social costs and use this distinction to explain why the air in cities is so polluted from automobile exhaust fumes. Examine how government can try to correct this externality.
43 If the money supply rises , what must happen to GNP under the equation of exchange 44 What is the most important form of money in the U.S. 45 What is the most important instrument of monetary policy 46 Define federal funds rate
Looking to raise profitability in perfectly competitive marketplace. How to efficiently plan production?
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A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value t..
A). Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis. B). Will a government policy to redistribute income to achieve less income inequality potentially help or h..
Provide a report to management of the firm as to whether or not it should continue to operate at a loss?
You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is demand e..
According to the life-cycle hypothesis, what is the typical pattern of saving for an individual over his or her lifetime What impact does this behavior have on an individual's lifetime consumption pattern What impact does the behavior have on the ..
How does the Federal Reserve increase or decrease the money supply and what might cause the Fed to change the supply?
Discuss the impact of expansionary and restrictive fiscal policies based on the basic Keynesian model, the crowding-out model, the new classical model, and supply-side model.
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