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In this discussion, you will compare and contrast monetary and fiscal policies. Consider two recent national crisis points: 9/11 and the banking failures of 2008. Was fiscal or monetary policy more immediately responsive to each crisis? Why? Was fiscal or monetary policy more effective against each crisis in the long run? Why? What is the impact of a government shutdown on the budget?
Bob borrows $52000 from a local bank at an APR of 7.2% compounded monthly. His monthly payments are $52000(A/P, 0.6%, 54) = $1128 for a 54 month loan. If Jim makes an extra payment on the first month of each year, his repayment duration for the loan ..
During the most recent recession General Motors and Chrysler lost huge sums of money in their operation (not counting government bailout money they could not assume they would get). How could they continue to operate at a loss?
Gomez runs a small pottery firm. He hires one helper at $15,500 per year, pays annual rent of $5,500 for his shop, and spends $21,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
An increase in the price of a good causes a:
q1. a budget deficit that is only temporary cannot be the source of inflation. is this statement true false or
In her speech to the Australia-Israel Chamber of Commerce last year, Julia Gillard contrasted "the problems of Europe" with Australia's "position of strength in the world economy" (Editorial, Feb 2 2012, The Australian).
Under the welfare system depicted in the diagram above, the marginal wage for a welfare recipient is: The reservation wage will decrease for an individual if:
From an economic growth and prosperity level, we have to look at the role of the financial system. We know that high inflation means higher interest rates, which lead to less purchasing power and more investing (investors like higher interest rates!)..
Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, and investment, AD, GDP, Prices and Unemployment. (Make sure to include both the money and the goods graph..
Output for a simple production process is given by Q = 2KL, where K denotes capital, and L denotes labor. The price of capital is $25 per unit and capital is fixed at 8 units in the short run. The price of labor is $5 per unit. What is the total cost..
Do protectionist policies benefit producers, consumers, workers, or the government
Suppose a firm's demand curve is given by P = 120 - 0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or inelastic? Please list steps and explain why demand is elast..
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