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From time to time, governments launch some economic policies to stimulate the economy. In recent years the US government has initiated economic stimulus packages to help the sluggish US economy. Among other thing, these packages include a one-time payment of $250 to retirees and Social Security recipients, reduction in Social Security Tax for one year, and spending on “Shovel Ready” projects across the country. State reason(s) for these actions and take a position in support or against these policies.
In the futures market, marking to market is a process that: A. Involves a transfer of risk. B. Always requires the sellers of contracts to transfer funds to the buyers of contracts. C. Buyers and sellers can request for an additional fee when the con..
A protective Tariff is often used by governments to attempt to control trade between nations to protect and encourage their undeveloped local industries, businesses. Using the Mundell-Fleming model, which of the following prediction is accurate under..
Assume that you have two ways to get the money, one way is to have it at present, so PV=10,000, another way is to get it in the future, so FV=11,000. Which one would you like to choose ? Why?
Based on discussions surrounding the controversy over the value of the Chinese yuan in foreign currency markets, is China still using central bank foreign exchange policy to maintain the value of the Yuan? What is the current policy of the United Sta..
Identify the features that define the future of e-commerce. Which of these, in your opinion, are the most lasting?
Autocorrelation does not bias the parameter estimates, however, few econometricians would trust parameter estimates derived from models with auto-correlated residuals. Why?
Summarize the article "Trading liberty for illusions" by Wendy Kaminer in 300 words by following these steps: - the central idea of the passage - what, who, why, where, when and how - the author's conclusion - the subject of the description and it's ..
The market for tennis shoes has a horizontal supply curve and a linear, downward-sloping demand curve. Currently the government imposes a tax of t on every pair of tennis shoes sold and does not tax other goods. The government is considering a plan t..
explain why a $100 billion increase in govermant purchases of goods and services will lead to a large increase in aggregate deamnd than a $100 billion decrease in taxes?
In a market, the equilibrium condition is given by the following: Suppose that there is a tax of $1 per unit, and the elasticity of supply is 3 and the elasticity of demand is 2 (in absolute value). How much of the $1 tax is paid by sellers? Which of..
Suppose a worker’s skill is captured by his efficiency units of labor. The distribution of efficiency units in the population is such that worker 1 has one efficiency unit; worker 2 has two efficiency units, and so on. Assume there are no migration c..
The price level in the economy in 2007 and 2008 rose from 100 to 105. In 2008 and 2009, the price level increase from 105 to 110.25. How does the short-run Phillips curve forecast the unemployment rate will change as a result?
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