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The United States has experienced a large trade deficit in recent years. Analyze the implications of a growing trade deficit on the future growth of the United States.
Suppose Congress passes legislation that raises taxes. At the same time the Fed undertakes contractionary monetary policy. Use the IS-LM model to illustrate graphically the impact on output and interest rates. Explain the graph in words, specifically..
For the production function q= k^0.25 l^0.25. Find total cost function C(w,r;q). Show that it is homogeneous of degree one in input prices and explain the intuition behind this property. Find the profit function?(w,r,p). Show that it is homogeneous o..
Which one of the following items about Theory of Constraints is TRUE?
"How has technology changed the purchasing and selling behavior?" what happened to your purchasing behavior once you adopted your smart phone, are you being more smartphonic in buying or selling items online.
Bond Valuation. Consider this bond offered by the Government of the Russian Federation: the Face Value of the bond is $1,000, its maturity is 4 years from today, the coupon rate is 5%, and the coupons are paid annually. Assuming the market interest r..
My income decreased by 25% and I purchased 10% more Cheez-Its. What is my income elasticity of demand for Cheez-its? Are Cheez-Its a luxury, normal, or inferior good in this case? Show your work to receive full credit.
All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?
Suppose because of higher interest rates in the U.S. (relative to British interest rates) investors sell British bonds to buy American bonds. State the potential currency effect on the British pound (appreciation/depreciation/no change) and draw a gr..
What's the point of creating new bills with more security measures to prevent counterfeiting? If the old bills are still acceptable as currency, why would anyone even try to counterfeit new banknotes with all these security features?
Consider the market for corn in the United States. Suppose that the mandated percentage of ethanol in gasoline is increased and at the same time a corn blight destroys a significant portion of the corn crop. Using a supply and demand diagram, show wh..
The classical dichotomy and the neutrality of money. Which of the following give the nominal value of a variable? Check all that apply. Which of the following give the real value of a variable?
The business cycle is really inevitable and will occur no matter what. So what is the point of macro policy? (Make sure you know what “policy” means)
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