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Suppose a large open economy with perfect capital mobility has a real interest rate that equates national saving and desired investment that is above the world real interest rate. Now suppose that the country undertakes a significant fiscal contraction, reducing govt. purchases by $100 billion and increasing tax revenues by $100 billion through a higher effective corporate tax rate. Show the effects of this fiscal contraction on real interest rate, desired saving, desired investment, and the net export balance.
Explain should they stay in business for three months or should they close down right now.
EBay claims that it has only a small problem with fraud also misuse of the sytem. Does this imply that it is overinvesting in addressing potention contracting problems.
Compute the gain from trade but you should discuss how comparative advantage is used.
Compute the elasticity of demand for every parameter.
As per the Ministry of Finance also the keiretsu are there other problems.
What is national saving? What is private saving? What is public saving? How are these three variables related?
Acme is sole supplier of security systems in product market and sole employer of locksmiths in the labor market. The demand curve for security systems is given by P=100-Q.
Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
Assume that, from an initial consumer equilibrium position, the price of good X falls-explain how and why the consumer's relative consumption of two goods will change.
Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram
Elucidate how would the presence of these agricultural policies affect the results of such tests.
Tom total revenue from cafe is 50000 per year, he bought a coffee machine costing $5000 an interest rate of 5 percent and $3000 is a loan from the bank which the rates is 10%
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