Determine whether the rate rise or fall

Assignment Help Business Economics
Reference no: EM131009998

The federal government is trying to decide what to do with the surplus they expect to have this year. They increase spending on schools. (This question is tricky; decide which information is important and which is not.)

Determine whether the rate rise or fall?

Does the loanable funds rise or fall?

Reference no: EM131009998

Questions Cloud

Firm operates in a perfectly competitive factor market : The marginal productivity theory states that if a firm operates in a perfectly competitive factor market, it pays each factor of production its marginal revenue product. However, this theory may fail to hold if factor markets are not competitive. Whi..
Discuss the ethical implications : The normal way of filing taxes is to put in a very low number, which starts a protracted series of negotiations, eventually ending up with a higher number being paid. This new bank did not follow this and the Italian authorities assumed it was stated..
How many months will it take for sallie to repay entire loan : A certain college graduate, Sallie Evans, has $24,000 in student - loan debt at the end of her college career. The interest rate on this debt is 0.75% per month. If monthly payments on this loan are $432.61, how many months will it take for Sallie to..
Price elasticity of demand is constant linear demand curve : Price elasticity of demand is constant along a linear demand curve. If a 10% fall in the price of bagels results in 20% increase in the quantity of bagels demanded, then the price elasticity of demand of bagels is 0.2. Price elasticity of supply is c..
Determine whether the rate rise or fall : The federal government is trying to decide what to do with the surplus they expect to have this year. They increase spending on schools. Determine whether the rate rise or fall? Does the loanable funds rise or fall?
The real wage increases with capital per worker : One aspect we have not covered is how the real wage depends on capital per worker. It is easy to show that the real wage increases with capital per worker (because the marginal product of labor is higher when each worker operates with more capital). ..
Portfolio investment better than foreign direct investment : Assume that N1 and N2 are neighbors and that N1 is relatively human and physical capital abundant while N2 is relatively labor abundant. Explain why. As a means for less developed countries to attract the savings and investment necessary for economic..
Each firm has a strong financial position : You are the manager in a market composed of 10 firms, each of which has a 10.00 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Firm in the industry wishes to increase total sales revenue

If a firm in the industry wishes to increase total sales revenue (ignoring cost considerations), will it raise or lower its selling price? Why? What happens to the demand for beer if the price of soda falls by 2%? Explain your answer. What happens to..

  Compute the equilibrium price and quantity in this market

illustrate what is the new equilibrium price and quantity. Compute the equilibrium price and quantity in this market.

  Elucidate the difference between tariffs and quotas

Elucidate the difference between tariffs and quotas. Who is harmed and who benefits by this restriction on trade.

  How much will the leader firm produce

Two firms are competing for output. The leader firm knows the market demand to be P=1200-Q with the follower firm demand Q2=400-0.5Q1. Both marginal costs is $200. How much will the leader firm produce?

  Demand is relatively elastic-supply is relatively inelastic

All else equal, if demand is relatively elastic and supply is relatively inelastic, a tax on a product will cause:

  Theory of production and distribution

Discuss the Institutionalise s theory of production and distribution. Note: a discussion of the Veblen an dichotomy, and how it fits into the theory of production and distribution should be included in your answer.

  Purchased shares of a mutual fund at a price

You purchased shares of a mutual fund at a price of $29.50 per share at the beginning of the year and paid a front-end load of 4.5%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio ..

  The price elasticity of demand for natural gas

The price elasticity of demand for natural gas is -1.2, and the price elasticity of supply for natural gas is 0.6. If the government imposes a ceiling price for natural gas that is 10 percent below the equilibrium price, the result will be a shortage..

  Video games and faces increasing opportunity costs

Construct a PPF for a country that produces food and video games and faces increasing opportunity costs. Show how the PPF changes given the following events.

  Q1 the marketplace for gilders is primarily competitive and

q1. the marketplace for gilders is primarily competitive and the market demand is p 315 - 0.6qd. the mutual marginal

  About the online cosmetics

Online Cosmetics: Australian cosmetics maker, Eternal Beauty Products, pressures online retailers to either sell goods at prices charged by brick and mortar stores or risk being cutoff. If online retailers are paying the same wholesale prices, why wo..

  Suppose that the investor has a level of risk aversion

Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Suppose that the investor has a level of risk aversion of A = 2. Which portfolio should the investo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd