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What is the liquidity trap and why is it so dangerous? How does expected deflation set a floor on the real interest rate that the Fed can set? Why is fiscal policy crucial in a liquidity trap? What is meant by a deflationary spiral.
A production function establishes the relationship between: Which of the following inputs can be changed in the short run? Which of the following statements is true of the long run?
Performing an internal environmental analysis helps a company identify the strengths to build on and the weaknesses to overcome when formulating strategies. Included in this strategy is an assessment of the functional areas of the business.
A firm has a fixed cost of $200 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $700. What is the total cost of producing 100 units?
In August 1994, a Mexican peso was worth 30 cents. A year later, it was worth only 16 cents since the political turmoil substantially increased the risk premium on Mexican assets. Using the Mundell-Fleming model,
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..
Which of the following are benefits of international trade? Which ones are correct?
When the price level rises, the long-run aggregate supply curve ________.
Discuss each of the pricing strategies below. What conditions are necessary to make each strategy successful in terms of increasing profits?
Write a ~350 word essay explaining which process your believe is preferable in a democracy and why (either choice is fine as long as it is well supported): the hybrid process of the Democratic party, or the Republican party process in which all deleg..
The three problems of resource allocation are faced by
What does Arthur Okun mean when he says that government can redistribute only in a Leaky Bucket? Explain why he may be right, and why he may be wrong. How much leakage would you accept? Why? In your answer, consider Rawls’s argument about how people ..
The salvage value of either alternative is negligible at any time. If MARR is 10% per year, what present expenditure for the auxiliary equipment can plan you justify spending? Assume that you need the heating system in?nitely.
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