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Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loanable funds market and show graphically what happens to the equilibrium interest rate and investment as a result of this balanced-budget change.
Congress does not have enough votes to override a veto. Draw a tree for this game and ?nd the rollback equilibrium.
Explain how much must government spending increase to eliminate the GDP gap.
A U.S.-based MNC imports 30 percent of its supplies from Europe. Exports to Europe, which are invoiced in Euros, account for approximately 50 percent of its revenues. Explain how the MNC can reduce its economic exposure to exchange and interest rat..
The state if Arizona decided to boost its own minimum wage rate by $1.60/hr. This pushed the wage rate earned by Arizona teenagers above the equilibrium wage rate in the teen labor market.
Illustrate what would be the most optimal number of spaces, and Illustrate what are these corresponding prices.
In light of the economic downturn, attention has been brought to companies that seem to have a monopoly on a particular market.
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.
Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company's production method is highly labor-intensive because many of the books keeping tasks are done ma..
illustrate the effects of capital formation by comparing the production possiblility curves at the present time and ten years in the future.
A geothermal heat pum can save up to 84% of the annual heating and cooling bills of a certain home in the norotheaster US. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2,900. The maximum am..
Describe the point at which diminishing returns occur. Indicate the points that delineate the three stages of production.
GDP Calculations; Consumption $300 Imports $30, Government purchases 150 exports 80, GNP 700, Gross Private Dom. Invest 100, a. Using the data in the table above, GDP is equal to _______.
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