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Consider the question of whether the United States should adopt a gold standard, remain in the current float-based system, or use some other system. Consider the impossible trinity mentioned above and carefully define all terms and concepts to which you refer. Explain the reasoning behind your answer and not the changes to the US economy and policy that would be required in any change.
Stabilization policy holds that during periods of poor economic performance government should engage in expansionary policies but during periods of poor economic performance government should engage in contractionary policies. Provide three reasons f..
Companies frequently borrow money under anarrangement that requires them to make periodicpayments of "interest only"and then pay the prin-cipal all at once. If Cisco International borrowed$500,000 (identified as loan A) at 10% per yearsimple inter..
The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm's output is $25. The cost of other variable inputs is $400,000 per day
Assume there are two firms, A and B, buying labor in a market. They each have a constant level of VMP = 15. They face an upward sloping supply curve, W = 2L, where L is the sum of the supply of labor purchased by firm A, LA, and by firm B, LB.
An asset cost $120 today. you will hold it for one year then sell it. there is a 25% chance that it will be worth $100 in a year, 25% chance it will be $115 in a year and a 75% chance it will be worth $140.
Boeing believes there is a 50% chance that either government will grant the subsidy, and that the subsidy decision will be made simultaneously and independently, with no collusion between governments. Boeing must invest in the project before they ..
The marginal propensity to import increases from 0.3 to 0.4. Find the new multiplier of the economy and explain why the multiplier has changed.
In a situation in which a gift certificate leads a consumer to purchase a greater quantity of an inferior good than he or she would consume if given a cash gift of equal value. Is this always the case
In spite of the fact that firms do not make payments on resources they own, these resources still have an opportunity cost. How is this possible, and how does this affect a firm's efforts to maximize profits
economic growth is a major issue in the current presidential election. the romney campaign argues that tax cuts for
Two identical countries, Alpha and Beta, can be described by the IS-LM model in the short run. The governments of both countries cut taxes by the same amount. The Central Bank of Alpha follows a policy of holding a constant money supply. The Centr..
Kay Evans just completed her B.S. degree and is considering pursuing doctoral (Ph.D.) studies in economics. If Kay takes a job immediately a job after graduation, she can earn $35,000 during the first year, with an anticipated raise of $4,000 per ..
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