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If the government made it easier for people to borrow money, perhaps by enacting programs to help them get loans, would you expect consumption spending to become more sensitive or less sensitive to current income? Why? How is the marginal propensity to consume affected? How is the multiplier affected?
If an editorial says that Americans are saving at lower amounts ie,20 years ago the average savings rate was 20% of disposableincome. The editorial predicted that this would drop to5 percent in less than five years.
1. The cross price elasticity of demand between goods X and Y is -3.5. If the price of X decreases by 7%, the quantity demanded of Y will ___. 2. What is the horizontal intercept of the budget line, given that M = $1,000, PX = $50, and PY = $40
In the fall of 2003, many analysts predicted that the dollar would fall in value relative to other currencies because the trade deficit in the United States had become too large. What effect would a fall in the dollar have on growth in the rest of..
Calculate Lorie's profit-maximizing output, price, and economic profit. B) Do you expect other firms to enter the singing lesson business and compete with Lorie C) What happens to the demand for Lorie's lessons in the long run
an event you believe to have a 60 percent probability; otherwise the shares pay a zero return. Shares of Elephant Inc will pay 8 percent if the Republicans are elected (a 40 percent probability), zero otherwise. Either the Democrats or the Republi..
Why do the deaths of Robin Williams, Michael Jackson, Joan Rivers, Ariel Sharon, Shirley Temple Black and Whitney Houston have such a dramatic impact on American society in the past few years?
In doing so, what would be the primary obstacle to overcome in implementing such a policy?
Heat Tamers, Inc., of Bend, Oregon produces special heat-resistant boots used primarily by firefighters, smoke-jumpers and steelworkers. It is contemplating an expansion into the heat resistant leather market charging a price of $150 per pair of b..
Qx= 1100-30Px-40Py+30Pz+.025M, where M is income and Py and Pz are the prices of related goods. Py=$15, Pz=$50, and M=$40,000. Now assume Px=$60, and income is still $40,000. What is the price elasticity of demand
The film itself will provide a broad background for your understanding of these issues; however, the most compelling responses will go beyond the film to incorporate additional recent data sources to justify your reasoning and logic.
Consider a competitive market served by many domestic and foreign firms. The domestic demand for thse firms' product is \(Q^{4} = 500 -1.5P\) The supply function of the domestic furms is \(Q^{SD} = 50 + 0.5P\) while that of foreign firms is \(Q^{S..
A researcher is interested in estimating the salary of management majors. it is known that the population of salary offers is normally distributed with a standard deviation of 4(in thousands of dollars). the sample yields a sample mean of 50. 1. c..
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