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Why is there a trade-off between the amount of consumption that people can enjoy today and the amount that they can enjoy in the future? Why can't people enjoy more of both? How does saving relate to investment and thus to economic growth? What role do banks and other financial institutions play in aiding the growth process?
What is her marginal rate of substitution when L = 100 and she is on the budget line? What is her reservation wage? What is her optimal combination of C and L?
Federal Reserve banks do all of the following except one. Which is the exception and today financial intermediaries do all of the following except one. Which is the exception?
There are two goods 1 and 2. Denote the consumption bundle consisting of x1 units of good 1 and x2 units of good 2.Write down the equation for the indierence curve that passes through the consumption bundle.
Describe the factor which determine the slope of the LM curve and whether an increase in theses factor(s) will make the curve flatter or steeper.
Households at bottom, Business at top, Product mkt left, Resource mkt. right side. And government in middle. Also bank is out of flow between product mkt. and Business's with money flowing in and out of flow. Diagram only portrays flow of money betwe..
Many observers believe that the levels of pollutionin our society are too high. Economists argue that appropriate correctivetaxes or tradable pollution rights will resultin efficient pollution reduction. How dothese approaches target the firms that..
Determine the prime rate, the discount rate, and the federal funds rate and who controls these rates? What would you expect to happen in the general economy if these rates are all increased or Decreased?
By how much will each firm reduce its SO2 output? Which firm will buy permits, which firm will sell them, and how many permits will be exchanged?
Sam arrived on campus at the beginning of the academic year with $480 to spend on textbooks and CDs. The price of a textbook is uniformly $80 and the price of a CD is always $20. Her parents made a deal with her - after Sam spends $240 of her own ..
The FCC has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue. Since most bidders are large telecommunications co..
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.
Suppose the price of widgets falls from $7 to $5 and consumption of widgets rises from 15 widgets a month to 25 widgets.calculate the price elasticity of demand of widgets.
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