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Government Spending, Taxes, and Investment. Suppose a government places a 10 percent tax on incomes and spends half the money from taxes on investment and half on public consumption goods, such as military parades. Individuals save 20 percent of their income and consume the rest. Does total investment (public and private) increase or decrease in this case?
The average 15- year- old purchases 12 CDs and 15 cheese pizzas in a typical year. If cheese pizzas are inferior goods, would the average 15- year- old be indifferent between receiving a $ 30 gift certificate at a local music store and $ 30 in cas..
Assume that the Bank of Ecoville has the following balance sheetand the Fed has a 10% reserve requirement in place:What is the maximum amount of new loans that this bank canmake Assume that the bank makes these loans. What will the newbalance sheet l..
Is it possible for transnet to make economic loss in a short run if so motivate with aid of graph eskom is not a profitable company why?
If a person borrows $12455.37 and agrees to pay it back in 60 monthly installments of $550.55, determine a) effective interest rate paid (corresponding with payment frequency units). b) nominal interest rate paid. c) effective annual interest rate pa..
With the assumption that A=1, and the share of labor in the national income is 1/2. Also K=120 million dollars and L= 10 million units and saving rate = 35% and the depreciation rate is 10%. How many periods it will take this economy to reach the ..
what extra semiannual expenditure for five years would be justified for the maintenance of a machine in order to avoid an overhaul costing $3000 at the end of five years. assume nominal interest rate of 8% componded semiannually.
Domino Pizzas decides to raise their price of their large Meatlovers supreme from $9.00 to $9.50. Their sales fall from 500 meatball subs to 460. Using the midpoint (or arc) formula, the elasticity of demand for Meatlovers supreme in absolute valu..
suppose that you just purchased a used car worth $12000 in today's dollars.assume also that to finance the purchase you borrowed $10000 from a local bank 9% compounded monthly over two years. the bank calculated your monthly payment at $456.85
Ilkka's income is $120 and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $2 per unit. (a) Calculate Ilkka's utility-maximizing purchases of X and Y. (b) How will his utility change if his income decreases..
i a competitive firms short run total cost function is given bytc q2 40 q 81a determine the range of prices for
Interpret the null hypothesis using your t-statistic.
Competitive Strategy. Bob Ice owns and operates Bob's Music Center, Ltd., a small firm that offers music lessons in Huntsville, Alabama. Given the large number of competitors and the lack of entry barriers
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