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An economy has the following consumption function:
C = 200 + 0.8DI
The government budget is balanced, with government purchases and taxes both fixed at $1,000. Net exports are $100. Investment is $600. Find equilibrium GDP. What is the multiplier for this economy? If G rises by $100, what happens to Y?
What happens to Y if both G and T rise by $100 at the same time?
The scenario is that I am going to open restaurants in China. One in Shanghai and one Beijing. These restaurants will serve healthy food such as salads, sandwiches, pizza, soup,
How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now Assume the bank will lend at a nominal 14% per year, compounded semiannually.
The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
Use the supply and demand model to explain what happens to the equilibrium price and the equilibrium quantity for frozen yogurt if there is a sudden increase in the price of milk.
In a class of 40 student,18 pass maths, 19 pass account,16 pass economics 5 pass maths and account only, 6 pass maths only, if each student pass at least one of the subject.Calculate the probability that a student selected at random fail in account.
State the commodity in which each country has absolute advantage and Identify the commodity of comparative advantage for each country
Show the effect that reducing protection on imports will have on factor prices. Show the effect of reducing protection will have on factor prices.
Analyze the contribution that automatic stabilizers play in making a stable economy. Provide some examples of the automatic stabilizers and use them to illustrate their significance.
What describes a tax that is assessed according to benifits received principle. Those who pay the tax recieve the benifits the tax provides or else.
The rising stock market implies an increase in wealth, at least as measured on paper. If we assume that some of this increased wealth gets consumed, then the rising stock market fuels an increase in aggregate demand, and may contribute to an inflatio..
If we assume most of the crime results from drug addicts stealing to buy drugs, what would happen to the amount of drug use and the amount of theft if we increased education programs to inform potential drug users about the dangers of drugs
Suppose that the currency drain ratio is 10 per cent of deposits and the desired reserve ratio is 1 per cent. If the Reserve Bank sells $100,000 of securities on the open market, calculate excess reserves after the first round. Calculate the money..
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