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Suppose GDP equals $200 million, consumption equals 140 million, government expenditure equals 20 million and has a budget deficit of 5 million. (Hint. suppose this is a closed economy, Y=I+C+G)
A. Find investment and taxes.
B. Find public saving and private saving.
Which has a higher Y.T.M. and why? What would be the real return on bond A and B if the actual inflation rate is 3%?
Explain how fiscal policy (making changes to government spending and taxes) would affect aggregate demand (AD).
If you were Chairperson of the Federal Reserve. Show each of the following shocks on an IS-MP diagram. Consumers become pessimistic about the state of the economy and future productivity growth. Improvements in the information technology increase pr..
In the loanable funds market,
Merchandising What is the difference between a service and a merchandising business? Provide an example of each. What are three new types of merchandising accounts?
At the current price level, would it be viable for the firm to increase the price level of its brand of coffee. Support your answer.
q.a computer manufacturer developed the following demand curve.q - 700p 80i - 500s 0.01awhere p is the price of a
The market risk premium is 10% also government risk-free bonds are payingIllustrate what is its Weighted Average Cost of Capital.
How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
Explain how many histories/game tree nodes are there where P2 has to move? P1.
For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. sells a product differentiated from that of its competitors. has marginal revenue less than price
Why or why not? More generally, are pricing strategies such as odd pricing, price discrimination, cost-plus pricing, and two-part tariffs valid, ethical economic strategies? Why or why not?
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