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In a model where a continuum of individuals have preferences for consumption and leisure as follows
wi = ci + ln(xi)
and individuals differ in their labour endowments ei, suppose two candidates run for office and offer a platform of imposing a proportional tax rate τ to finance lump sum transfers uniformly to all the population.
Where the planner maximizes the average individual's welfare. Are taxes higher or lower at the median voter solution? Why?
1.Classify each of the following as related to the transactions demand, precautionary demand, or asset (speculative) demand for money. Explain: (a) Rodrigo keeps $200 in cash in
Consider the following information in the international money markets: Spot rate : $0.95:€ Forward rate (one year) :
Define the macroeconomic stability in market for promoting development. Macroeconomic stability implies that: • Tight fiscal policy that is balanced government budgets and d
analyse the effect of an increase in the price of sim cards on the equilibrium price and equilibrium quantity of cellphones handsets
WHAT are relationship between them showthese relitionship with the help of digram also state relitionship between AR MR & TR.
law of variable propotions
what is it?
as mention above, the physical demand for gold rises in india during late summer and the beginning of fall.what situation occurs at the end of the year?
Distribution of benefits for transferring drivers to transit during a congested morning commute A residential suburb has N = 30,000 commuters who drive alone to jobs in a cen
QUESTION 1 (a) Compare and contrast the main theories of a demand for money. (b) Specify a money demand function for a small island economy like Mauritius. QUESTION 2
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