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1. According to the Keynesian model, what are the two components of consumption spending? What factors determine how consumption changes when real disposable income changes? Explain.
2. Suppose that the government pursues expansionary fiscal policy by lowering taxes. What are the expected demand-side effects? What are the possible offsets to the demand-side effect? How might supply-side effects change these results?
3. Explain the differences between the public debt and the government budget deficit. Explain how deficit spending could be a burden to future generations.
4. What are the direct and indirect effects of an increase in the money supply?
5. What are the effects of a tariff on a good?
If a straight line passes through the point x = 12 and y = 4 and also through the point x = 4 and y = 8, the slope of this line is
(a) reduce shirking by employees and (b) reduce employee turnover What is the implication of the efficiency wage theory for unemployment In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficie..
Assume that initially the price is $50 in a perfectly competitive market. Company are making zero economic profits.
Elucidate what are some economic conditions that affect the cost of money
your company invests funds in greece. the company claims that the investment will grow to 10 times the original
Economists are often criticized for making assumptions. Explain why are assumptions necessary? To think about this, you might consider an assumption that is often made,
One person proposes an allocation (both objects go to person 1, both go to person 2, one goes to each person), which the other person then either accepts or rejects. In the event of rejection, neither person receives either object.
If you expect that the dividend will grow at a 8% rate into the foreseeable future, Elucidate the highest cost at which you would recommend purchasing this stock to your clients?
Suppose a company issues a zero-coupon bond that pays $2,000 in a year's time. The company issues a low-risk bond that competes with saving accounts offered by banks. Assume banks offer the interest rate of 2%. Price of this bond is equal to...?
Define business inventories and explain how they are counted in GDP. Calculate government spending given the following information:
Will recessions starting in the US be more easily transmitted to Canada under a fixed or flexible exchange rate system. Use the appropriate graphs to illustrate your discussion.
In 2008 and 2009, the U.S. economy experienced a severe downturn in economic activity due to the financial crisis. Relative to the price decline of the housing market, what are two repercussions that caused a sizable fall in aggregate demand?
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