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During the financial and economic crisis in 2007-2008, the US federal government tried to stimulate the economy introducing a fiscal stimulus package, worth of $800 billion. While some people were supporting higher government expenditures, others were against it because they believed higher government spending would lead to higher government debt.
Which view do you support? Why? *Please answer using 3-4 complete paragraphs and support
Which of the following arguments strengthen the idea of floating exchange rates? A. Trade deficits can be corrected through changes in exchange rates. B. Changes in exchange rates will not impact the trade balance in the country. C. Governments shoul..
Under what conditions would firms be likely to support an industry-wide advertising ban. Please provide a few examples.
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
Offering group medical coverage to large firms and requiring all employees to participate in the coverage.
q.recently one of the nations largest consumer electronics retailers began a nationwide television advertising campaign
Demand for Insurance Consider the utility function u(x) = log x. Find the optimal insurance coverage, C ∗ , when insurance is actuarially fair (i.e. q = p). Find the optimal insurance coverage when q > p. Find Dirk’s expected utility from this prospe..
Explain in detail the concept of excess burden (or welfare cost) and explain the factors significant in the calculation of the excess burden. What is the marginal excess burden and why is it important concept for policy evaluation?
You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering?
If a transaction imposes external costs, then: A) too much is being produced relative to the socially optimal amount. B) Production should be increased to generate enough profits to cover those costs. C) all production of the good or service should c..
Identify the impact of the policy on Demand or Supply of the good(s) or service(s). Discuss the change(s). Draw a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.
what amount of additional government spending (without changing taxes) would be needed to reach the desired increase of GDP? what change in total amount of direct taxes (without changing government spending) would be necessary to reach the same incre..
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. Assume that the country is in a budget deficit and carrying a..
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