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Which of the following is an example of an automatic stabilizer? When the economy goes into a recession,
more people become eligible for unemployment insurance benefits.
stock prices decline, particularly for firms in cyclical industries.
Congress begins hearings about a possible stimulus package.
the Federal Reserve changes its target for the federal funds rate.
How long will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children?
Which is the safer investment, Company A Stock, Company B Stock, or a porfolio containing half of each If you make a lucky prediction about the prices of the stocks of the two companies, will you earn more or less if you invest in that company rat..
Converse the latest equilibrium price also quantity to result from these changes.
Annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption, investment, government spending, exports and imports. Estimate changes in economic growth and in the component shares.
The total surplus (TS=PS+CS) under the old tax per unit was $2000. Next, government reduces the tax rate such that the total government revenue drops $200 below its previous value and DWL drops $100 below its previous value, what can be a possible ne..
q1. illustrate the measures that were taken by the u.s. government also federal reserve to counteract the financial
hat drug is nearly through clinical trials, and is expected to produce an acceptable return on the investments that have been and will still need to be made in it.
bill operates a boat rental business in a competitive industry. he owns 10 boats and pays 1000 per month on the loan
If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.
Assume you have $10 to spend on either apples or chocolate. The price of a pound of apples is $3/pound and the price of chocolate is $5/pound. Graph the consumption possibilities curve. What is the opportunity cost of the 1st pound of chocolate? What..
Assume that The United States passes a law that allows an additional 1 million persons to immigrate to the United States each year. Discuss the effects that this will have on the Production Posibilities Fromtier. (identify at least 3 effects)
Describe the likely economic impact to a company if its bonds are down-rated from AA to A in its annual review from Moody's and S&P. Find the price of a 20 year bond that has a coupon rate of 8%, pays semi-annual interest, and has a $1,000 face amo..
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