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An increase in government spending would shift the IS curve to the right—and shift it by the amount indicated by the Keynesian multiplier formula--for however we have written/specified the model
One U.S. dollar is trading on the foreign exchange market for about 1.47 Chesterfield ales (the Chesterfield currency). Therefore, one Chesterfield ale would have purchased how many U.S. dollars?
The president of the US announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes him. If the public believes the president's prog..
Suppose that the central bank has increased the money supply such that there is additional $420651 in excess reserves. If the reserve ratio is 13 percent, what is the maximum the money supply could increase?
Suppose a government is able to permanently reduce its budget deficit. Use the Solow growth model to graphically illustrate the impact of a permanent government deficit reduction on the steady-state capita-labor ratio and the steady-state level of ou..
Based on a random sample of 10 values from a normal population with mean μ and standard deviation σ, you calculated that xbar = 10 and the sample standard deviation = 4. Estimate a 95% confidence interval for the population mean. Which probability di..
Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or l..
If the government assigns private property rights to a common resource, then the
A furniture maker has an order for 94 identical tables. If the furniture maker estimates his learning curve at 87% and can reach steady production of 7 hours per table on the 7th table, how long should it take to make all the tables? Express your ans..
Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting ..
Companies are interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For instancce, Highways Industries manufacturing asphalt materials for road construction, acquired VIP Transport Ltd
Consider a closed economy. Use the supply and demand for loan able funds model to predict the effects of the following events on interest rates and investment.
Because the U.S. postal service is a monopoly and Congress sets postal prices through legislation, market forces do not determine stamp prices. New York City government auctions taxi medallions that give the right to transport passengers by taxi. Bec..
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