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Fiscal Policy : Solution set
Need help wit the following question:
The U.S. Congress is currently debating the new budget. Most Republicans want to reduce federal spending. Democrats do not want to reduce federal spending by as much as Republicans do.
Should federal spending be drastically reduced? Yes or no?
Let's say you live in Montana and you like to ride mechanical bulls in bars on Friday nights. You estimate that over the next year there's a 4% probability you will incur medical bills of $20,000
Are you agree or disagree- Describe your answer with economic principles and the reasons why.
A marketplace has only two sellers. Both are trying to decide on a pricing strategy.
Describe the total cash flows in real terms and the depreciation tax shield. What is it that has you concerned.
Elucidate what could Coca Cola do to mitigate any undesirable effects of business cycles.
Suppose the Federal Reserve lowers its target for the federal funds rate six times in seven months while the European Central Bank leaves its target for short term interest rates unchanged.
Explain how the Central Bank can set the nominal interest rate in the money market. In addition, explain how it can use expansionary monetary policy to boost GDP if the economy is in a recession.
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Suppose that American households change their tastes such that they want to save more at every level of income.
In the country A, all wage contracts are indexed to inflation. That is, each month wages are adjusted to reflect increases in cost of living as reflected in changes in price level. Explain answer with aggregate supply and aggregate demand curves.
Fastly Delivery Corporation has two divisions.
A perfect competitive firm has the cost function TC = 1000 + 2Q + 0.1 Q^2-What is the lowest price at which the firm can break even?
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