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Be able to discuss how changes in income affect the average and marginal propensities to consume and save – and how economists use this information and how what they do can lead to changes in interest rates, affecting individuals in the economic system, including decisions to borrow to invest or not, based on what key information.
A small university with many competetiors has determined that the price elasticity of demand for its services is equal to -2.5. The university Board of trustees is considering rasing tution by 10% to generate additional revenues. Is this likely to be..
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
Illustrate the marginal revenue curve that corresponds to positive marginal revenue. Line segments will automatically connect the points.
Which of the subsiquent arguments is the president using to justify the trade restriction on ball bearings
Elucidate how much they can accumulate over 25 yrs if they move the money into a money market mutual fund earning 5 percent.
A student loan totals $18,000 a graduation. The interest rate is 6%, and there will be 60 payments beginning 1 month after graduation. If this student received $1,500 as a graduation present and uses it to pay off an extra $1500 in the first month, w..
q1. illustrate what financial market yield data can the federal use to determine if longer term inflation expectations
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Explain the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier. Explain how the size of the multiplier will change when one brings in the role of the marginal tax rate.
The use of money as a medium of exchange represents the mostimportant service that money renders. The money supply known as M1 includes all assets that are good storesof value. The Fed's reserve requirement ratio can reduce the monetary base. The Fed..
Suppose you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H)=420H-40H^2 and C(H)=100H+120H^2. The corresponding formulas for marginal benefit and marginal cost are MB(H)=420-80H and MC(H)=100+240H. What ..
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers? Why might gove..
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