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a. Give two examples of externalities connected with consumption and saving that can be used in arguing for policies aimed at increasing U.S. personal saving. Explain why they can be used that way.
b. Explain what a traditional I.R.A. is. Explain how it increases a depositor's return to saving.
c. Explain a method that economists have used to estimate the fraction of deposits into traditional I.R.A.s that represent "new" savings induced by the favorable tax treatment the deposits receive. What theoretical reasons suggest that we could reasonably expect that less than half of these I.R.A. deposits are new saving, induced by the tax treatment? Explain
What is the amount of equal annual deposits needed in years 7 through 14 to provide for a series of annual withdrawals of $2400 beginning 9 years from now and increasing at the rate of 2% per year through year 19? Assume an interest rate of 5% per ye..
q1. why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?
Why does the loss in economic surplus directly experienced by the participants in the marketplace for s good
Find an article (newspaper, magazine, or online) that discusses monetary policy. Use the article to answer the following questions. 1. The article indicates what monetary instrument(s) is/are being used by the central monetary authority? 2. Which ins..
what will be price of wheat, how much total wheat will be demanded and how many wheat farms will there be.
Using the Lagrangean Multiplier method, determine how should the hardwood be allocated between the two lines of product so that total profit can be maximized. Also calculate the optimal amounts of Y and Z and total profit from each product line.
When the exchange rate falls, in the foreign exchange market the quantity demanded of the currency increases.
Three independent projects are available for a secret government agency. The estimated costs associated with each alternative are given below. Use the conventional B-C ratio method to determine which alternative(s), if any, should be selected at an i..
q. what is the value of a piece of land? consider the following scenarios.1 suppose that you own a farm run by tenants.
illustrate what proportion of the population would score higher than Bob.
Assume that, in a competitive market, long run supply and demand is more elastic than short run supply and demand. Suppose that the government imposes a transactions tax in this market. In the long run, the tax will collect [less/more] revenue and ca..
q1. what are the highest and lowest payments from the writer that the bookkeeper farmer team will accept for the 6th
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