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Graphically, the downward -sloping is curve shows an inverse relationship between income (Y) and the "the" interest rate (i), while the upward-sloping LM curve shows a direct relationship between these two variables. Explain why these curves have these slopes, what their point of intersection means, and show how expansionary fiscal and monetary policies work. Under what conditions would these policies work more, or less, effectively?
Suppose that this price cut was completely responsible for its raise in revenues from 460 million yen in 1966 to 640 million yen in 1967. Compute the indicated arc elasticity of demand.
Give three reasons why firms produce in Germany rather than in a lower-wage country.
Discuss, relating in part whether such highways are public goods and whether or not privatization should work.
Say if the following statement is true or false and why-Exports depend only on the demand of foreign countries for our products and therefore our exporting
Suppose the demand curve for a product is given by Q = 300-2P+4I where 'I' is average income measured in thousands of dollars. The supply curve is Q = 3P - 50.
Assume the government imposes a tax of $2.00 per unit to reduce widget consumption and raise government revenues. What will the equilibrium quantity be?
Evaluate the range of marginal revenues
The Federal Reserve's publishes the H.3 Statistical Release-Aggregate Reserves of Depository Institutions and the Monetary Base-weekly. Recent releases show that the composition of the supply of total reserves
At the end of 2002, the (1-year) interest rate was 1% in the U.S., and 26% in Argentina. Recall that at the same time, the spot rate for the Argentine currency was Peso 4.00/$.
Macroeconomics questions, discuss the short-run and long-run effects, Keynesian model, Distinguish between ongoing demand pull and ongoing cost push inflation.
What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?
Describe how a change in investment can have big impact on GDP causing a nationwide slump. Recall that investment is "small" relative to the entire economy.
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