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Suppose that GDP (Y) is 5,000. Consumption is C=1,000+.3(Y-T). Investment is I=1500-50r, where r is the real interest rate. Taxes (T) are 1,000 and government expenditures (G) are 1,500.
a). Calculate the equilibrium values of C, I, and r.b). Calculate the equilibrium values of private saving, government saving, and total saving.c). Now suppose that there is a technological innovation that makes businesses want to invest more, so that the new investment function is I=2,000-50r. Calculate the new equilibrium values of C, I, and r.d). Calculate the new equilibrium values of private saving, government saving, and total saving.
In what ways do the offering MBA courses at other locations create producer and consumer borne value to both the university and the malls? What factors affect the ability of the university and malls to capture value?
Depends on the ideas, explain with which of the two economists do you agree more and explain why.
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
If Deltas managers needs to follow a constant payout ratio dividend policy
If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development. Illustrate what condition would encourage research and development in..
A machine with a ten year life is to be depreciated by the MACRS method. The machine has a 1st cost of $30,000 with a $5,000 salvage value. It's yearly operating cost is $7,000 per year.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Assume an economy in which the reserve ratio is 15 percent, people hold 10 percent of their deposits in the form of cash, and there are no other leakages.
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
Using the exchange rates and prices in the tables above:
When 2-mutually exclusive projects are considered, NPV calculations and IRR calculations may, under certain circumstances, give conflicting recommendations as to which project to accept.
Apart from the abundance of these resources, you also see a lot of poverty. Can you provide an economic explanation of why poverty exists
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