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In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
A. Calculate the value of the multiplier, given the change in investment.
B. Explain, as if you were explaining to your (non-economist) grandparents. What is the meaning of that multiplier you found in c)?
Prepare a demand schedule for both demand curves and prepare them on an Excel graph. Calculate the marginal revenue for each.
Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because
Explain the concept of externality. What does it have to do with the efficient allocation of resources?
Suppose that American households change their tastes such that they want to save more at every level of income.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Characterize each of the following statements as true or false, and explain your answer.
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
Atlantis is a small, isolated island in the South Atlantic. The inhabitants grow potatoes and catch fresh fish. The accompanying table shows the maximum annual output combinations of potatoes and fish that can be produced.
The total sum of squares is 400 and the sum of squares errors is 100, what is the coefficient of determination?
Suppose you are running a photo copy center that makes illegal copies of the textbook. An illegal copy of the book sells for $10 and you only have one copy machine.
How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.
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