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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 marginal propensity to consume.
Suppose US and Russia produce only two goods meat and potatoes in a week's time according to the table below which shows their production possibilities. Meats(lbs) Potatoes (lbs) Who has absolute advantage in each product? Who has comparative..
What is your opinion and will you support another stimulus package? Why or why not?
In national income accounting identity showing the equality between national saving and investment, what is the representation of private saving and what is the representation of public saving?
Why would the simple Keynesian consumption function predict that this strategy would work and the nominal interest rate cannot fall below zero. What might the Fed do to try to achieve the optimal real interest rate you calculate in Part b?
Describe what happens to price of a bond that pays a fixed percent of the face value every year when interest rates in the economy rise.
Assume a $1,000 par-value bond was issued last year with a promised yearly rate of return (yield) of 6% when market interest rates on comparable securities were also 6%.
a regular price or a sale price. Suppose that when one firm announces the sale price and the other announces the regular price for a particular product, the firm announcing the sale price attracts 50 million extra customers to earn a profit of $5 ..
Describe a long-term contract shoeing all necessary steps that the current supplier can offer the buyer that will be attractive to the buyer and will also strengthen the incumbent's monopoly power.
World Class Manufacturing Operations has enjoyed rapid increase in sales & high operating profits. But now the firm faces potentially fierce competition from a large number of competitors as WCMO's important basic patents expire during the coming yea..
In the Macroeconomics book by Stephen Williamson (5th Edition) in the Appendix for Ch. 7-8 Problem 1 the problem asks: Suppose in Solow growth model that there is government spending financed by lump-sum taxes, with total government spending G=gY,..
Compute the four-firm concentration ratio (C4) before the merger. Show your work and round your answer to 4 decimal places.
The Hanover Manufacturing Company believes that the demand curve for its product is P = 5 - Q-Evaluate the wisdom of the firm's pricing policy
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