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Suppose that the country of aquiline has an inflation rate of about 2% per year and a real growth rate of about 3 % per year. Suppose also that it has nomial gdp of about 400 billion units of currency and current nomial national debt of 200 billion units of domestic currency. Which of the following government spending and taxation figures will keep the debt to income ratio constant?
a. government spending equal to 30 billion units and tax collections equal to 25 billion units
b. same as above equal to 20 billion units
c. same as above equal to 10 billion units
d. same as above equal to 5 billion units
Martin lives for two periods, earning $50,000 in income in period 1, which he consumes or saves for period 2. The interest rate on his saving is 10% per year. Interest income is taxed at rate τ = 30%. Draw Martin’s intertemporal budget constraints wi..
World Trade Center and Pentagon affected short and/or long-term productivity in United States. Elucidate your response and show any movements in PPF.
The main difference between neorealists and classical realists is that:
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
Academic researchers usually develop more complex also eworkerate models than applied researchers.
q1. what are the three most important factors driving economic growth? explain briefly using an appropriate example.q2.
To determine which of the output levels represents a macroeconomic equilibrium.
Suppose to have a linear programming problem. It is known from the optimal solution that allowable increase of the b1 is equal to 30. Initial value of b1 is 40.
In class, we discussed the case of a nation experiencing capital flight. Let's imagine the world contains only two nations and that one of them is experiencing capital flight. In the diagram, below trace out the effect of this capital flight on the o..
What are the key management assertions related to equity? What are the most important assertions related equity? How will auditors test these assertions?
(Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substi..
Should people be allowed to sell kidneys in the U.S.? How should we measure the gains and losses? In general, are markets always the preferred solution? Why or why not?
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