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If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
Monopolistic competition is similar to perfect competition in that:
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million.
Provide a response to Case 9: Lowe's Companies, Inc. (p. 451). Answer the 5 questions at the bottom of textbook page 459 (last paragraph). Do not "Design a three year strategic plan..." as outlined in the final statement. Should Lowe’s expand into C..
Suppose the market for eggs is in equilibrium at a price of $2 per dozen eggs. If the government decides to enact a new price floor at $1.50 per dozen eggs, what outcome does economic theory predict will occur?
A new technological line of gasoline production has the following parameters: Expected annual inflation is 5%. If current interest rate is 10%, what is the unit cost of gasoline in dollars per litre in real terms?
Take a minute to think about the demand for college education and whether or not the costs of attending college (not just tuition, but also some of the opportunity costs associated with attendance) influences the number of students who attend college..
Construct a numerical example to show that the exclusion of municipal bond interest from income taxation is equivalent to a government subsidy of state and local capital spending. Assume you believe that income is a good proxy for ability to pay. Wha..
Consumption of fixed capital (depreciation) can be determined by:
Suppose you decide each month how much of your disposable income to spend on health insurance and on other goods. Suppose that both “health insurance” and “other goods” are normal goods. Each unit of health insurance costs $10, and your monthly incom..
(Marketting) When introducing new products, some manufacturers set a high initial price and then reduce price later. However, reducing price also reduces contribution margins, which in turn impacts profitability. To be profitable, the reduced price m..
explain how much of the current unemployment can be attributed to cyclical factors.
If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..
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