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1. Explain how higher saving leads to a higher standard of living. What might deter a policymaker trying to raise the rate of saving?
2. What is government budget deficit? How does it affect interest rate, investment and economic growth?
3. Suppose Y=20 ; C=12.5 ; G=4 ; G-T=0.3. Calculate, Public saving, Taxes, Private saving National saving and investment.
Switch grass was promised to be the new crop that would replace corn as the primary feedstock for bio-fuels a couple of years ago. Why have we still not switched to switch grass.
A business is generating $1000 a month for the next 5 years at a nominal interest rate of 12% compounded monthly. How much cash should one pay for it?
Based on the standard labor demand model, in the long run, what do you expect to be the scale and substitution effects of a decrease in r (the price of capital) on the amount of labor demanded? What is the predicted total effect?
Explain how the average rate of per capita income in south africa between 1960-1991 compered to 1991-2010.
briefly explain the probable effects of the screenwriters’ wage increase on: Equilibrium price, equilibrium quantities, and total revenues in the movie and popcorn markets.
You are considering buying a new house, and have found that a $200,000, 30-year fixed-rate mortgage is available with an interest rate of 4 percent. This mortgage requires 360 monthly payments of approximately $947 each. If the interest rate rises to..
q.given yues utility function u xy 10x 7ynbsp1.is mrsxy diminishing constant or increasing as the consumer
The report must address what income, Social Security, and Medicare taxes are and why U.S. citizens must pay them.
The law of demand implies that when the price of a good rises, people buy less of it. This makes the demand curve slope monotonically downwards. But take a stock on the rise; might there not at least be one tendency for people to buy more of it under..
All workers face tradeoffs. Self-selection allows workers to exploit these tradeoffs when choosing jobs, thus maximizing utility. One trade off is between pay and safety. Some workers are willing to take a hazardous job if it is accompanied by higher..
Assume the full- unemployment rate is 5% . What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail
Consider an open economy in which the real exchange rate is fixed and equal to one. Consumption, Investmentnt, and Government spending are given by: Solve for equilibrium output in the domestic economy
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