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Sandra, a single taxpayer in the 35 percent marginal tax bracket, has $60,000 she can invest in either corporate bonds with a stated interest rate of 9 percent or general revenue bonds issued by her municipality with a stated interest rate of 6 percent. What do you recommend that she do? Would your answer change if her marginal tax rate is only 28 percent?
Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
Do such technological advances contradict the law of diminishing marginal returns
Since she sleeps 9 hours a night, the maximum number of hours she can work a month (taken as 30 days) is 450. She gets pleasure not only from her spending money but also from her leisure hours. Draw her budget constraint in leisure-expenditure spa..
Is there which you can do to hedge your bet. That is, is there some way to ensure that you won't lose all of your money in case the value of the franc plummets.
Japan has traditionally had an employment system characterized by a "lifetime" employment relationship between employer and employee and salaries that are based on length of service with the employer-starting low
During the late 1980' and early 1990's, economic reforms initiated by Soviet President Mikhail Gorbachev began to raise consumer incomes; but the Soviet government continued to impose price ceilings on basic goods like food, clothing and household..
Suppose that the government increases taxes and government purchases by equal amounts. What happens to the interest rate and investment in response to this balanced-budget change Does your answer depend on the marginal propensity to consume
On this graph indicate how a decrease in the price of a substitute good will or will not shift the curves and cause a new equilibrium point. Label any new demand or supply curves you may have to draw as D2 and S2 label any new equilibrium point yo..
Plot. U.K. real Output over the 42-Year peroid Put real output on the vertical axis of the graph and the year on the horizontal axis and Estimate potential output by drawing a smooth trend line through the points on the graph. identify any shifts i..
Katya is a freshman with a 3.0 grade point average. She studies diligently, but experiences severe anxiety before tests because she doesn't believe that her efforts will make a difference. It is almost the end of the semester and Katya must do wel..
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
Label a point f inside the curve. why is this an inefficient point. label a point g outside the curve. why is this point unattainable.
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