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Some people claim that recessions are caused by excessive saving on the part of the public. When people decide to save more, they are deciding to buy less now. Won’t that cause some goods to go unsold? And won’t that cause producers to reduce their levels of output, laying people off and thus reducing their incomes, causing these people to buy less, thus setting off a downward spiral? How would you evaluate the claim that those who spend lavishly create prosperity while those who save bring on recessions.
What percentage of total spending must president and Congress act upon each year. What accounts for remaining expenditures.
Children in poor neighborhoods have bleak outlooks on life and do not see much gain to studying. A recent experiment is paying children in poor neighborhoods $100 for each “A” they earn in a six-week grade reporting cycle. How does this affect behavi..
To set a tax rate at the appropriate level to maximize its tax revenues, a government must engage in
What is the equilibrium price. What is the equilibrium quantity. If the price was $7, what would be the quantity demanded
q1. suppose a firm in each of the two markets listed below were to increase its price by 30 percent. in which pair
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
Florida is considering construction of a flood control dike having a life span of 16 years. The investment require is $60,00 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 pe..
For the scenario that follows, solve by hand and then solve using the Excel functions POISSON and EXPONDIST. The time between arrival of patients to an urgent care center follows an exponential distribution with a mean of 30 minutes. What is the prob..
Assume that you want to change careers to run a gourmet food truck - the career of your dreams. You use Chapter 7 from Everything Economics as a guide to help you to decide whether to quit your current job, in which you make $45,000 per year. Answer ..
Describe a situation where the presence of multicollinearity would not necessarily be a bad thing. Explain your rationale. Describe a situation where multicollinearity would definitely be a bad thing and recommend remedial measures for the situation ..
Draw the average and marginal revenue curves and the average and marginal cost curves. What are the monopolist’s prot-maximizing price and quantity? What is the resulting prot? Calculate the firm’s degree of monopoly power using the Lerner index.
The U.S. has historically low interest rates at present. How would you predict these would impact the value of the dollar on foreign exchange markets? How, in turn, would these low interest rates impact our balance of trade?
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