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In the United States there are few “permanently poor.” Income mobility studies indicate that fewer than 5 percent of those in poverty stay there. They better themselves and move up the income ladder. Given this information, do you believe we need to increase, decrease or change our current redistribution methods? Explain why.
You have made arrangements to borrow $1,000 now and another $1,000 three years from now (End of Yr 3). The obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 10%, 12%, 12%, and ..
A negative income elasticity of demand coefficient indicates that:
The government introduces a law which imposes a cost of $5 on landlords (shifting the supply curve up by $5) and a benefit of $10 to the consumers (shifting the demand curve up by $10). How is the rent going to change? Are the parties going to be bet..
In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?
Employers rely on a job applicant's signals:
Zack quits his job at a consulting firm, which pays $40,000 a year, to enrol in a two-year graduate program. His annual school expenses are $30,000 for tuition, $2,000 for books, and $600 for food. What is his opportunity cost of attending the two-ye..
What is the impact of World Aggregate Supply (WAS) on the trade deficit and domestic employment? Referring to the Aggregate Supply and Aggregate Demand model (AS/AD) and the material in Chapter 11 what challenges does structural stagnation pose for m..
q1. in signaling model assume high school graduates are paid a stream of income whose present value is 200000. college
During the financial crisis of 2007-2008, the governor of the Bank of Canada expressed concern that the commercial banks were "hoarding" cash rather than extending a more appropriate volume of loans. Why might the banks do this, and what is the impli..
In an open economy, the condition for equilibrium in the goods market is different from the condition for a balanced trade account. Explain using words or equations (or both if you wish). Draw a diagram that illustrates a situation where the goods ma..
Using diagrams for aggregate expenditures (AE) and aggregate demand and supply (AD-AS), show the short-run effects each of the following events has on the Canadian economy.
Anthony is considering the purchase of used car. The price, including the title and taxes, is $9,530. Anthony is able to make a $2,530 down payment. The balance, $7,000, will be borrowed from the Credit Union at an interest rate of 9.25% compounded d..
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