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Since 1900 real income has increased tremendously, yet the average number of children per family has decreased. Consider the following possible explanations and illustrate in terms of indifference curves and budget constraints of families between the number of children (put on the x axis) and all other goods (on the y axis). You should have three sets of indifference curves. One for each of the following scenarios.
a. Children are an inferior good; since we are richer now we want fewer of them.
b. Children are not inferior, but the cost of raising them has gone up.
c. Children are not inferior, nor are they relatively more expensive to raise, but tastes have changed. Couples want fewer children.
1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money? 2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.
A Wartburg engineering student has been out of school and working for a few years when they decide to buy a house that costs $233,000. They intend to pay a down payment of 20% and finance the rest at 5.75% per year compounded monthly on a 30-year mor..
In practice, the primary tool used by the Federal Reserve to control the money supply is
An investor is considering buying a 20-year corporate bond. The bond has a face value of $1,000 and pays 6% interest per year in two semi annual payments. To receive 8% interest, compounded semi annually, how much should be paid for the bond?
The following graph shows the market for loanable funds. For each of the given scenarios, adjust the appropriate curve on the graph to help you complete the questions that follow. This change in the tax treatment of saving causes the equilibrium inte..
Imagine you are a manager for the good or service used above. From the results of the regression equation, suggest strategies to either maintain demand.
Calculate GNP, GDP, and aggregate income. GDP = $ GNP = $ Aggregate income = $ b) What is depreciation in this year? Depreciation = $ c) What is NDP? NDP = $
how the limit on the amount of reimbursement is not the only effective way to decrease expenditures for health care if health care providers succeed in increasing the demand.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
q.consider an economy described by the following equationsy 10k.3l.7round y to the nearest 1000c 250 0.75y-ti 1000
If a physician has ownership in a surgery center why shouldn't he be able to do surgery? Why is this against the law?
You bought a call option with a strike price of $35. What is your total payoff on this option contract if the underlying stock is selling for $36.70 on the option expiration date? You purchased a call option with a $22.50 strike price and a call prem..
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