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Separate the bond market into municipal bonds and corporate bonds, if the President lowers the federal income tax rate by 5% and holding everything else constant:
a. The interest rate on both corporate and municipal bonds should increase.
b. The interest rate on both corporate and municipal bonds should decrease.
c. The interest rate on corporate bonds should increase relative to the rate for municipal bonds (increase the spread between the two).
d. The interest rate on corporate bonds should decrease relative to the rate for municipal bonds (decrease the spread between the two).
Assume that the book printing industry is competitive and starts in a long-run equilibrium. Make a diagram describing the typical company in the industry.
Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?
Draw a supply-demand diagram of the kenyan mangoes market to illustrate both the autarky and free trade positions. make sure you use all the information presented in the some facts above?
Will firms in industries, in which high levels of output are necessary for minimum efficient scale, tend to have substantial degrees of operating leverage? Please explain.
The Fed sells bonds in the open market during a period of low unemployment and no excess industrial capacity. The economy is far below capacity and the government lowers taxes
Given the global economy, increase of emerging economic superpowers such as China and India, and challenges to remaining competitive in a global world, do you think that American federalism remains relevant?
Which were the main causes of the Great Depression and why did the Great Depression last so long?
What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment?
Who are maximizing their rational choice, the Japanese or the Americans and which of the three forms would Adam Smith agree is the best choice?
What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.
Describe and discuss why characteristics of the labor markets should result in the similar wage rate for all jobs requiring the similar level of abilities and skills?
Consider two firms X and Y that produce identically tasting cold drinks. In order to raise the demand for its cold drink, firm X raise its advertisement outlay.
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