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Q1. If consumption increases by $12 billion when real disposable income increases by $15 billion, what is the value of the MPC? What is the relationship between the MPC and the MPS? If the MPC increases, what must happen to the MPS? How is the MPC related to the consumption function? How is the MPS related to the saving function?
Q2. How do changes in disposable income affect government purchases and the government purchase function? How do changes in net taxes affect the consumption function?
Calculate price, quantity and social surplus for the initial state and each policy.
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
Why do celebrity icons receive such widespread attention and adulation
Semiconductor chips are used to store information in electronic products, such as personal computers. One of the early leaders in the production of these chips was Texas Instruments (TI).
Suppose that the only input used in the generation of solar energy is sunlight
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
Ordinary least- squares method or the two- satge least squares method for estimating industry demand for rutabagas.
Why all the balance of payments accounts be in surplus. What factors determine the demand for British pounds in foreign exchange markets.
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Analyze the impact of this floor on price, quantity demanded and supplied. Would this price floor create a surplus or deficit of this product in the market?
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
The benefit of cutting down a forest is $1 million now. the environmental cost of that harvest is $10/year forever.
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