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Assume there is an increase in government spending of $30 million and a decrease in tax revenue by $45 million. Carefully answer the following and demonstrate your answers using a diagram.
What effect will this have on the demand and supply of loanable funds? How will this affect the real interest rate and the quantity of investment?
Is the equilibrium change the same, more, or less than the initial movement of the curve you identified in part a.? Carefully explain why, using your diagram.
How will your answer in part a. change if the decrease in tax revenue was $15 million instead of $45 million? Carefully explain using a diagram (you can use the same one as before but need to clearly indicate the change related to this part and describe it in words).
What does it mean to have an imperfectly competitive market. Clarify with examples.
Explain whether transfer payments, such as Social Security and unemployment compensation, are counted as government spending in calculating GDP.
BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To attract an additional worker to its labor force, BigBiz would have to raise the wage rate to $6.25 per hour. What is BigBiz's marginal factor cost?
Write a few paragraphs summarizing the documentary. What does the filmmaker think is wrong with the current state of the food industry?
q.gdp taxes di c i g cig1250 200 800 300 200 1500 200 1000 300 200 1750 200 1200 300 200 2000 200 1400 300 200 2250 200
The manager of a canned food processing plant is trying to decide between two labelingmachines. Determine which should be selected on the basis of rate of return with a MARR of 20%per year.
At quantities above the minimum-cost output
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRs: Card 1, $4,300, 19%; Card 2, $5,500, 23%; and Card 3, $3,400, 17%. Interest c..
If you were to learn that a bottle of gatorade increased in size from 2009 to 2010, should that information affect your compute of the inflation rate.
q1. recall that abc company has periodically borrowed funds but contemplates a stock or bond offering so that it can
Suppose that Joe enjoys and repeatedly does stupid things like getting heavily into debt and insulting police officers. Do these actions constitute systematic errors? If he gets what he wants each time, are his stupid actions even considered to be er..
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. Denote by t the amount of dollars a consumer has to pay for every unity she consumes in exc..
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