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A new tax is levied on airline profits to finance improvements in the nation's airports. The current market rate of interest is 8 percent. However, airline profits are subject to a 50 percent tax. A cost-benefit analysis calculates the percent return to the investment in new air facilities to be 12 percent. Will net benefits from resource use increase as a result of construction of new air travel facilities?
Compute the expected stock price for each firm using the constant growth dividend discount model.
Express how long would it take for the price level to double if inflation persisted.
If markets do not self-adjust, how can a decline in spending lead to a negative process that ruins an economy? How are they related to the Keynesian Cross and/or the Aggregate Demand/Aggregate Supply Diagram
The Euro has had led to positive growth in income and trade to non-EU countries. Based on this statement, how did the other countries benefit from the introduction of the Euro?
Draw the demand and supply curves. What is unusual about the supply curve ? Why might this be true?
If in an economy a $150 billion increase in investment spending creates $150 billion of new income int he first round of the multiplier process and $105 billion in the second round, the multiplier and the marginal propensity to consume will be, respe..
Elucidate the most important economic indicator affecting your organization and explain why.
Atlantis is a small, isolated island in South Atlantic. The inhabitants increase potatoes and catch fresh fish. The accompanying table shows the maximum yearly output combinations of potatoes and fish that can be produced.
The price elasticity of demand for both tissue has been estimated.
Illustrate hat are the positives and negatives of protectionist trade policies on the part of the federal government.
Write an essay evaluating the role of governments in assuring that developing countries obtain a fair and adequate share of the benefits of international trade.
Income inequality and immigration are two major important issues facing the United States economy and have long been debated across the political spectrum. What are some of the important questions related to income inequality and immigration.
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