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1. What are the ways or reasons under which ?scal de?cits can crowd out private expenditures in the determination of aggregate demand? In this discussion, do not forget the Ricardian equivalence theorem.
2. In the IS-LM model, discuss how each of the following affect the relative ef?cacy of monetary and ?scal policies:
(a) the interest elasticity of money demand;(b) the interest elasticity of investment;(c) the income elasticity of money demand.
3. "It makes no difference whether government expenditures are ?nanced by taxes or bonds." Specify a theoretical basis for this statement. Provide at least two reasons why it may not hold.
what do you mean by a social welfare function? if you assume that such a function exists what properties of social
What is the equilibrium level of income in Vulcan? What would the level of expenditures be if the economy were operating at $2000? Make a forecast for the future of the Vulcan economy.
The Federal Reserve is most likely the most independent government agency in the US. Independence means that Fed is free from presidential and congressional political pressures.
The World Bank's classification system
Outline a plan that will assess the effectiveness of the market structure for the company's operations
Please provide detailed and elaborate descriptions for each of the following terms and concepts. Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.
Suppose that no communication is possible between the firms; each must choose its R&D strategy independently of the other. What actions will the firms take, and what is the outcome?
The Fed’s decided to maintain its low interest-rate target in the face of a rightward shift of theAD curve in the late 1960s which led to an inflationary equilibrium.
What are some expected domestic economic consequences of thecurrency crisis for the countries involved Focus on: import prices of goods and services into the Asiancountry. export prices of goods and services from the Asiancountry.
Identify the existing effect of the economic factors on aggregate demand and supply - Identify fiscal policies that are currently being recommended by government leadership.
if you have the utility function uxy min3x y 4y. where x is measured on the horizontal axis and y is on the vertical
for a given nation suppose the following table shows the relationship between real consumption and real disposable
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