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What is the liquidity trap and why is it so dangerous? How does expected deflation set a floor on the real interest rate that the Fed can set? Why is fiscal policy crucial in a liquidity trap? What is meant by a deflationary spiral.
In the long run, if price is less than average cost. the market must be in long-run equilibrium. there is profit incentive for firms to enter the market. there is no incentive for the number of firms in the market to change. there is an incentive for..
You invest in a fast food restaurant on Rt. 13 in Dover, Delaware (Hey, it seemed like a good idea at the time). You were required to invest $300,000. One year passes. You decide to sell your business. During the year you were paid $25,000 as your % ..
Explain the role and responsibilities of public relations in public and private companies, nonprofit organizations, agencies and firms.
Elucidate how consumers in an economy can be better ff if the marginal rate of transformation does not equal consumer's marginal rate of consumption.
The goal of advertising may be seen as creating the compulsion to purchase a product. Is this a problem that should somehow be controlled/regulated? Or, rather, is the company simply offering information to the consumer so that they can freely choose..
Elucidate how did the invention of crack cocaine transform the urban street gang.
Consider an economy where population growth is 0, but technology growth is positive and equal to g. Suppose that the depreciation rate decreases. i. Use graphs to illustrate how the steady state and the golden rule change. ii. What is the effect on t..
Discuss whether horizontal or vertical boundaries have been changed, and whether they were extended or shrunk. Following the September 11, 2001 attacks, the U.S. government established the Department of Homeland Security.
Assume that the six-month forward exchange rate between the US dollar and the euro today is $1.22 per euro. Assume also that the spot rate is $1.10 per euro. Then we can say that the euro is trading at a
Bob’s utility function is given by . 0.5 0.5 U = X Y Bob earns $400. The price of X is $2 and the price of Y is $4. a. What is Bob’s optimal consumption bundle before any price change? b. Suppose the price of X increases to $4. What does Bob consume ..
U.S. government price supports for milk led to an unceasing surplus of milk. In an effort to reduce the surplus about a decade ago, Congress offered to pay dairy farmers to slaughter cows. Use two diagrams, one for the milk market and one for the mea..
Alternatives A and B require investments of $10310 and $13400, respectively. Their respective net annual cash inflows are $3300 and $4000. What is the rate of return for each alternative and for the incremental difference? if the interest rate is 1-%..
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