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In an effort to increase output the government could try to increase the employment, or try to raise capital stock or improve technology. If the government chose to lower taxes in an effort to increase the labor supply, how could this get in the way of trying to achieve the other two goals?
Show that in the insurance signalling game, if the consumers have finitely many policies from which to choose, then an assessment is consistent if and only if it satisfies Bayes’ rule. Conclude that a sequential equilibrium is then simply an assessme..
Elucidate is the efficient yearly output of paper and how can this be achieved.
Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
You purchase a 1 year T-bill with a $10,000 face value at a price today of $9,756.0975 (a) What is the implied yield to maturity on the 1 year bond? (b) After 1 year, what is the rate of return of the T-bill?
We can be certain that in the short-run a monopoly will produce the level of output that minimizes the cost on per unit basis. A well developed financial system helps reduce the effect of the initial investment requirement as a potential barrier to ..
Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. How much labor does he employ if the price of each pizza is p = $12 and the hourly wage is w0 = $6? [Hint: In this case, i..
If we modify our basic three sector model and instead of assuming that taxes are autonomous or fixed in amount (the Tx = Txo assumption) now assume that taxes are a positive function of income, will this modification have the effect of increasing, de..
Suppose the government intends the tax to reduce the consumption of some goods for example, cigarette or chewing gum. Illustrate what will determine the effectiveness of the tax in reducing consumption
Over a period of two years, you made 24 monthly purchases of a stock. You paid $500 for the first month, and increased by $10 per month thereafter. At the end of the two years, you sold all the stock for a total of $18,000. What effective annual rate..
To reduce her personal carbon footprint, Zooey is buying a new hybrid. She has negotiated a price of $21,900 and will trade in her old car for $2350. She will put another $850 with it and borrow the remainder at 6% interest compounded monthly for 4 y..
A savings bank offers $1000 certificates deposit. Each certificate can be redeemed for $2000 after 8.5 years. What are (a) the nominal, (b) the effective, annual interest rate, if the interest is compounded continuously?
with monetary policy for closed, it is hard for authorities to stimulate demand. Interior design does this show that currency-board regime was a mistake.
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