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Suppose the savings rates by income quartiles in Indonesia are given by the following:1st quartile - 5% savings rate2nd quartile- 7% savings rate3rd quartile- 10% savings rate4th quartile - 20% savings rate
A). Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis.
B). Will a government policy to redistribute income to achieve less income inequality potentially help or hurt growth in this case? Illustrate your answer graphically.
Illustrate what happens to the supply curve and the equilibrium point when a new technology improves a production process.
Elucidate how the Law of Diminishing Marginal Product results in u-shaped average cost curves, both Average Total Cost (ATC) and Average Variable Costs.
Assume the Federal Reserve sells government securities from its existing holdings to the financial sector and the non-bank public.
Assume the role of regional integration in promoting global business of Kenya, Africa.
What do you think the increase in productivity is likely to move the economy closer to full-employment or farther away.
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of factors are cited to explain the large price inc..
Simpson's Scuba Company is a manufacturer and retailer of scuba machine. Currently, the Company has no coordinated cash management system, and the firm's management has decided to focus on ways to improve the cash collection process.
Consider the equation: Y= C(Y-T) + I + G a. Calculate the total differential for this equation. b. Holding I and G constant, derive an expression for the tax multiplier (dY/dT)
Suppose there are two risky assets, D and E. D has an expected return of 6% and standard deviation of 15%. E has expected return of 9% and standard deviation 25%. The correlation between the two assets is 0.2. The risk-free rate is 1%. a. Find..
I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.
Use the following equations for exercises 16-18. C=$100+0.8Y, I=$200, G=$250, X=$100-0.2Y 1. What is the new equilibrium level of real GDP if government spending increases by $150? 2. What is the new equilibrium level of real GDP if government spendi..
Either tenants occupy rent controlled buildings with a customers surplus deserve to live there.
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