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For observational data such as global temperature, stock market prices, un- employment, the most persuasive scientific evidence that one variable causes a change in another is
(a) A model derived from accepted theory that demonstrates that a change in one variable causes a change in another.
(b) A regression that finds a significant relationship between the two variable.
(c) Plots of the two variables showing that they move together in the same proportion over time.
Illustrate what does this outcome reveal about the size of the multiplier
To help you reach a $5,000 goal five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year. (The first deposit is made at the end of the first year). If..
A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a
In this problem, we consider replacing an existing water heater with an array of solar panels. The net installment cost of the panels is $1260($2100 less a 40% tax credit from the government) Based on an energy audit the existing water uses 190 kilow..
Indicate whether each statement below is positive or normative. Briefly explain each answer. As a society we should cut pollution by 5% to preserve nature for future generations. The larger a country is it will have a higher GDP (Gross Domestic Produ..
Illustrate what will happen to the price of bonds also to money holding if the Fed changes the interest rate as a result of a decrease in the money supply.
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. It is important to have the right mix of policies and that al..
Suppose there is a bill to increase tax on cigarettes by $1 per pack coupled with an income tax cut of $500. Suppose a person smokes an average of 500 packs of cigarettes per year--- and would thus face a tax increase of about $500 per year from the ..
A mathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. If real GDP per perso..
Although strategic investment can confer an advantage on the first mover, such investment also locks in the firm. Discuss how the value of flexibility would affect our analysis of strategic advantage.
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. what is the current price of the bond?
Peter Evans emphasizes that states have to play specific roles in order to promote economic development. According to him what are the roles of the states in economic development? Explain and discuss. Compare Evans’s arguments with the neoliberal the..
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