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Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment.
a. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
b. Representatives of several large exporters oppose the policy. Why might that be the case?
Assume the supply of good X is given through Qsx = 10 + 2 Px . How many units of good X are produced if the value of good X is 20?
This solution shows graphically what could happens to quantity sold when a price ceiling or a price floor is imposed.
A monopolist faces the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets-What is the optimal level of production of wine decanters?
Suppose he chooses to drive 10 hours a day explain how many hours of leisure and how much consumption does this imply.
Briefly discuss the methods traders use in attempting to evade the difficulties they face in markets that involve "Lemons".
Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
Consider a 2-company Cournot model. Let ci (i=1,2) denote firm i's cost per unit of output produced, and suppose that c1 > c2 .
Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range.
For every following events, consider how you might react. What things might you consume more or less of would you work more or less.
Describe the key components in the structure of the Federal Reserve and how they are linked together. What role does the Chairman of the Federal Reserve play within this structure Of the tools that the Fed controls, pick one tool.
Assume you are the manager of a California winery. How would you expect the following events to affect price you will receive for a bottle of wine?
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