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Suppose that initially in an economy net taxes, T - TR, are equal to $400 while government expenditures are equal to $200. Furthermore, suppose you know that this economy is initially a closed economy. You are told that the demand for loanable funds by businesses is given by the equation r = 10 - (1/100)LFD where r is the interest rate expressed as a percent rather than a decimal and LFD is the quantity of loanable funds demanded. You also know that the supply of private savings (Sp) curve is given by the equation r = 2 + (1/300) Sp where Sp is the quantity of private savings supplied at any given interest rate.
a. Calculate the initial value of government savings, Sg.
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
(a) Write down the maximization problem for this individual. (b) Solve the maximization problem and nd current consumption, future consumption and savings (or assets).
A man is fired from his job because he was late for work too many times; While he is searching for another job, he would not be counted in the labor force because his employer had a legitimate reason for firing him.
Illustrate the stated direction of recent monetary policy. What recent actions have the Federal Reserve taken to confirm that direction
Most wild Asian tigers are the common property of the humans and governments that control the lands they inhabit. Why does this pose a significant problem for maintaining the wild tiger population in the future.
What is the implication for the expected value and standard deviation of the returns on your portfolio if you invest in N (instead of only 3) of these assets and N becomes very large?
Describe the maximum insurance premium that the individual is prepared to pay.
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
Capital and labor are perfect complements in production for this firm - production process
a farmer grows either corn or wheat on her 1057-acre farm. initially the prices of both are equal to 207 per acre
Why should the government consider to increase tax on cigarette
The Present Worth (PW) of the cost (- Installed cost and operating cost + Salvage value) of Westinghome is most nearly
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