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Suppose income a tax for a particular demographic group drops from 15% to 10%. As a response we see a significant portion of the affected people moving from not working to working full time. What does this tell you about the underlying model of labor supply?
Explain how does the capital/financial account differ from the current account. Give examples of what is included in each.
the price to BBB-rated companies rose from 37.5 basis points in 1998 to approximately 129 basis points in 2002. This is a 244% increase in the price or spread. Explain these changes using shifts in demand and/or supply.
Why does the Fed use open market operations as its principal tool of monetary management, rather than changes in the required reserve ratios, or changes in the discount rate? What are the differences in the effects that each technique would have on i..
Put the following arguments into standard form for their type and evaluate for strength according to the criteria for that type. Some reconstructions might involve adding premises. One third of the 4,800 species of frog are threatened with extinction..
If I were a multinational U.S. corporation who enters into a joint venture in Brazil (with a Brazilian company) to make and sell a product in Brazil---but the currency is dropping against the U.S. dollar, and the economy is in a recession, what does ..
Under perfect competition firms take prices as given. In that case, and under constant returns to scale, firms make 0 profits in equilibrium. Show that this is true for the Cobb Douglas production function, when firms rent capital from households at ..
The Laffer Curve indicates that
Consider the following competitive firm in the short run: What is the profit maximizing condition for this firm? Is this firm making a profit or a loss in the short run?
When demand is elastic, the____________effect dominates the_________effect. When demand is inelastic, the___________effect dominates the_____________effect. When a change in price causes a change in quantity demanded, total revenue always moves in th..
The relationship between income, savings, and consumption is directly related to the price level in the economy. Your research has shown that for every additional dollar of disposable income, consumers currently spend $0.75 and save the rest. Assumin..
Discuss how the need for control over foreign operations varies with firms’ strategies and core competencies. What are the implications for the choice of organizational structure and entry mode?
According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.
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