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In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consume. Assume the marginal propensity to consume (MPC) was only 0.5. How much of that $900 billion went to increased consumption? Where did the rest of the money go?
Employers rely on a job applicant's signals:
According to the BLS, the CPI rose 3.8% in August of this year compared to a year earlier. Food prices rose 4.6% and clothing prices were up 4.2%, while new car prices rose 3.8%, and medical care was up 3.2%. What percentage change in the CPI up unti..
question 1 of 2 exchange ratesintroductionsuppose the u.s. federal government adopts the policy of whats good for
After getting her first job, a college graduate wants to begin saving money so she can pay cash for a new car. She wants to save enough each month to have $24,000 at the end of 5 years, and her savings account pays 6% interest, compounded monthly. Ho..
Consider a linear city of length 1 in which the consumers are uniformly distributed. There are two firms located at the extremes of the linear city: firm 1 is located at the left-hand extreme, and firm 2 is located at the right-hand extreme. Derive t..
The neoclassical consumption model allows consumers to have access to savings. How would our conclusions about consumption in each period change if the consumer could not access markets for savings? For full credit you must support your answer using ..
A county is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years. If these figures are i..
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
Evaluate the third-party payment system and its effect on the consumption and provision of health care services. Determine the most problematic area and make the relative improvements.
If the demand for a final product rises, then this results in
Analyze the business cycle. What are the determinants of aggregate demand? Examine changes in aggregate demand and aggregate supply, using the data from Step 1 and Step 2. How do these changes affect the business cycle?
Assume a downward sloping line on a graph represents the amount of money that a typical snowboarder /skiier visiting Mount Mogul ski resort on a typical day would be willing to pay for successive lift trips up the mountain if lift trips were charged ..
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