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Q1. When corporate income taxes are assumed to exist, Modigliani Miller and the traditional theorists agree that capital structure does affect value, so the basic point of dispute disappears. Do you agree? Why or why not?
Q2. Suppose that G increases by 100 to 600 and we assume, as we often do, that firms match the increase in demand by increasing Y by 100. In round two, this is an increase in income of 100 to consumers. Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes. Be sure to include the leakages, taxes, Savings and NX. Use the same conditions as stated above.
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
Government encourage a decision to expand? How would it affect the reputation of the business?
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
What is the opportunity cost of Josephine's trip to the wedding
For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
5 ways to develop strategic business and briefly discuss differentiate, customer-oriented, understand clients need, r-s platform and management, active marketing, etc
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Suppose that these cost figures accurately refl ect the economic costs of providing inpatient services at these two hospitals and that the two hospitals face the same average total cost curve.
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
The government wants to increase real GDP demanded to $15 trillion at the given price level
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
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