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The largest source of federal tax revenue is the personal income tax. There has been discussion of replacing the personal income tax with some type of consumption tax. Under an income tax, all income is subject to tax. Under a consumption tax, only that portion of income that is spent is taxable. In other words, with a consumption tax, taxes can be avoided by saving money.
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected. Then click on a curve and drag it in the direction you believe it will shift.
Find out the average total cost and average variable cost as a function of the level of output. Assuming the firm has the same cost curves in the long-run for q>0 and C (0) =0, how much will it produce in the long-run?
What is the difference between contractionary and expansionary monetary policy?
Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
Taiwan Electronics produces 3 models of the CB radios, A, B, and C-Employ the transportation model to find out the best production schedule.
What are those key objectives and what are the key tools the Fed plans to use to achieve those objectives?
Suppose the market for widgets can be described by the following equations: What is the equilibrium price and quantity?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
How many "spells" of unemployment occur each year in this economy? What percentage of the "spells" are only one month long?
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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