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First, discuss what is meant by the "natural real interest rate". Second, explain what effect each of the following will have on the natural real interest rate: (1) a reduction in government spending; (2) an increase in the nominal money supply.
Donna buys goods X and Y. She can just afford the bundle X=6 and Y=11. She can also afford X=12 and Y=8.Each of these bundles exhausts her income. Draw Donna's budget line. What is the ratio of the price of x to the price of y? If Amy spent her entir..
Use your knowledge of the problems associated with asymmetric information to elucidate why insurance companies often include deductibles as part of their policies.
Show that an increase in government spending that is productive in this fashion could increase welfare for the representative consumer.
For promotion to lieutenant, police officers in a city police department first have to pass a written aptitude test. This requirement was challenged in court by several black officers on the grounds that the test unfairly discriminated against blacks..
During the average month in 2006 she was logged onto the Web for 17 hours. Illustrate what is the average cost of an hour of Web time to Kety. What is the marginal cost of an additional hour.
A market has a demand curve described by P=30-Q, a supply curve described by P=16+Q, and a price ceiling of 20. Calculate the Total Surplus of the market with the price ceiling
Revenue Function's Independent Variable is the Output. Copy Rights are the Natural Monopoly. Water Supply is the Natural Monopoly. Cost Equation's Independent Variable is the Output. Marginal Revenue is the Price in all cases.
How much would you be willing to pay for this security if he market interest rate is 6%? Suppose that you have just purchased the security, and suddenly the market interest rate falls to 5%. What is the security worth? Suppose that one year has elaps..
What happens to the profits of boat makers in short run. Illustrate what happens to the number of boat makers in the long run.
When the exchange rate falls, in the foreign exchange market the quantity demanded of the currency increases.
If the interest rate rises, the owners of oil will supply ________ oil today and conserve ________ for the future. An increase in the value that future consumers are expected to place on an exhaustible resource ________ the marginal cost of extractio..
The steel industry has been lobbying for high taxes on imported steel. Russia, Brazil also Japan have been producing also selling steel on world markets
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