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Crowding out can be minimized, if at the same time that the government increases spending, it:
One of major political developments of last many decades is the increasing size and economic or monetary integration of the European Union. Determine what effect do you think this will have on international trade between nations?
Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future.
Most macroeconomists believe it is a good thing that taxesact as automatic stabilizers and lower the size of themultiplier. However, a smaller multiplier means that the change ingovernment purchases of goods
Explain the impact of China, as an emerging economy, on the global economy today. How is the U.S. economy affected by monetary policy in China and the current USD/yuan exchange rate?
Discuss the cyclical behaviour of the budget deficit in South Africa and provide an explanation for this behaviour. (half a page with references)
Discuss three ways in which the Federal Reserve can change the money supply.
Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coc..
Describe by what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
The guidance system of a ship is controlled by a computer that has three major modules. In order for the computer to function properly, all three modules must function. Two of the modules have reliabilities of .92, and the other has a reliability ..
How have you responded to increases in the price of gasoline over the past few years? How would you respond if the price of gasoline doubled over the next two years? What alternatives do you have for buying gasoline? Could you change to zero con..
Variables other than the rate of interest affect gross investment. Changes in these other variables cause investment demand to shift downward or upward. What should happen to the economy’s investment demand when there is a change in the following var..
An individual is considering two investment projects. Project A will return a zero profit if condition are poor, a profit of $4 if conditions are good, and a profit of $8 if conditions are excellent. Project B will return of $2 if conditions are p..
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