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Each year since winning control of the House of Representatives in the 2010 election, Tea Party Republicans have argued that we need to immediately initiate sharp reductions in government spending and entitlement programs and rapidly move towards a balanced budget, (although they have never actually produced a budget proposal in which tax revenues would match government spending plus entitlement transfers). Many Democrats, while arguing that tax rate increases on high income earners need to be part of the any deficit reduction program, have agreed that we need to initiate budget deficit reduction now.
A) What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cuts in Federal Government spending on goods and services or via sharp increases in federal income tax rates?
B) Does this argument imply that budget deficits don't matter in the long run? If not, why might the impact of large deficits predicted in the long run if there is no change in current tax, entitlement or defense spending programs be different than the impact of budget deficits today?
What must the CFO expect about the Pounds/$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the British Pound CD's? (Note: a specific numeric answer is required for full credit. Part credit can be earned for correctly discussing the expected direction of change in the exchange rate without supplying an exact answer.
According to economist, if savings equal $5 trillion and spending equals $100 trillion, what will investment equal?
what one thing about the experience made you feel good about it? Why? In reflecting on the unpleasant experience, what one thing about the experience made you feel uncomfortable about it? Why? Consider what you do for work on a day-to-day basis. G..
An industry consists of three firms with identical costs C (q)18q +q2. What is the industry equilibrium (price, output and profits) if the firms have Cournot beliefs?
You are the manager of a monopoly, and your demand and cost functions are given by P = 300 - 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is demand e..
Assume you do not think that the statement does have any credibility. Illustrate what is the expected impact of the resulting policy on your business.
Suppose DJIA records the changes in prices of 4 stocks. Suppose initially the prices of these stocks are $40. $20, $60. and $80. What is the DJIA.
Give salary subsidies to firms that hire the less-advantaged. Initiate a federal training program the raises the skills of poor individuals.
Compute the four-firm concentration ratio (C4) before the merger. Show your work and round your answer to 4 decimal places.
The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign.
Suppose that an increase in jewellery demand induces a a surge for in the demand for gold. Using diagrams from part a show what happens in the short run to the gold market and to each existing gold mine.
If the price of a product produced in a competitive market increases. who is most likely to occur in the labor market for workers who produce the product.
Elucidate the interpretation of the coefficient b. Do the demand functions satisfy the relevant homogeneity conditions.
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