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Construct a model of loanable funds market in a closed economy.
a) Discuss the effect of an increase in the Government Budget Deficit on the rate of interest & the level of private investment. Identify the crowding out effect in this context.b) Suppose that investment is perfectly interest inelastic. Discuss the crowding out effect for an increase in the govt. budget deficit.
assume that the low-calorie microwavable food company from assignments 1 and 2 wants to expand and has to make some
You are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G. Consumption 350 billion G Transfer payments 100 billion G Investment 100 billion G Government purchases 200 billion G Exports 50 billion G Imports 15..
compare and discuss realism orthodox liberal and interventionist liberal perspective. provide empirical support and
if youre the marketing manager of a large corporation which of these financial ratios would you look at first and why?
identify whether each of the following transactions takes place in the factor market or the product market.a. billy
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $12 million in withdrawals from other banks’ ATM machines. On average, noncust..
the world bank is currently advising newly industrialized countries on how to encourage growth and they have asked for
Assume Zack values his time at $0.25 per minute. He can purchase an MBTA report each morning that tells what the actual travel time will be for both the bus and the subway. How much is he willing to pay for this information?
Three students have each saved $1000. Each has an investment opportunity in which she can invest up to $2000. Here are the rates of return on the students' investment projects: Minji: 5% Yanrong: 8% Dorothy: 20%
the palms dry cleaning shop in fort lauderdale florida faces a highly seasonal demand for its services as the
Suppose the movie theater cannot price-discriminate and needs to charge both students and professors the same price per ticket. If the movie theater charges $5, who will buy tickets and what will the movie theater’s profit be? How large is consumer s..
Suppose the City Council conducts an extensive review and finds that the information provided by the Executive Director of the MTA is more accurate. What action should the City Council take on bus fares and why?
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