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Suppose u(c, c') = ln c+β ln c' , there exists N consumers and each consumer lives for 2 periods. In each period they receive an endowment y, y' and are taxed t, t' . There also exists a government which spends G and G' . Finally there exist one period bonds B which exist in a frictionless market and for which both consumers and government have access to.
a. Derive the lifetime budget constraint for both the consumer and government
b. Define equilibrium of this economy
c. Solve for the equilibrium objects
q. the tax reform act of 1986 contains a clause appropriating tax dollars for any taxpayer incorporated on september 7
A businesses strategic choices are limited by economic conditions. When you arrive at strategy class, you will be asked to perform an environmental analysis.
q. assume that capital goods are on the vertical axis of a production possibilities graph and that consumer goods are
Suppose you have a sample of body weights from a population of males above 20 years of age. Your sample size is 121 men. Body weights are approximately normally distributed. Your sample mean is 190 pounds, and your estimated population standard devia..
Fully evaluate these regression results, including computation of t-statistics, adjusted R2, and the F-statistic.
Bulls Eye department store specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retail..
An engineer decides to set aside money in a 529 Plan for his newborn's college education. He estimates that the child's needs will be $48,000 on her 18th, 19th, 20th, and 21st birthdays. If he plans to make uniform deposits starting 3 years from now ..
Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market.
Explain how does a firm solve this pricing problem to maximise profits. Explain, using a diagram to support your answer.
Jimmy has a room which overlooks, from some distance, a major league baseball stadium.
She tells her friend that the additional utility she would get from the second pair of sneakers is the same as the additional utility she would get from the fifth sweater.
How would you evaluate monetary policy and fiscal policy today? Is monetary policy contradictory with fiscal policy? Why or Why not? Support your analysis with examples.
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