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What is crowding out?
How can an increase in the government budget deficit lead to a change in the trade deficit?
Explain how the government can adjust its behavior in response to a decrease in tax revenue.
How does the debt-to-GDP ratio relate to the real interest rate? Explain.
How might budget deficits affect long-term economic growth?
Explain Ricardian equivalence.
Why are many economists skeptical about the validity of Ricardian equivalence?
A rural utility company provides standby power to pumping stations using diesel-powered generators. an alternative has arisen whereby the utility could use a combination of wind and solar power generators, but it will be a few years before the ene..
In a traditional monopoly, all or most sales are in a market are undertaken one company. In a natural monopoly, the cost-technology of an industry where is is most cost efficient to be run by one company and a good example of this would be public ..
Fewer potatoes are demanded when the price of rice has fallen from $ 0.25 to $0.10 cents per pound-The Molly Jock wants to buy a high definition television to watch the Olympic Greco roman wrestling competition in Beijing.
Explain how are people worse off when the price level rises as fast as their incomes
What would be your subsequent steps? Make sure you include both the positive and negative effects of your actions making sure you include the trade-offs or opportunity costs.
Fastly Delivery Corporation has two divisions.
What are major reasons for government involvement in a market economy such as the software industry (e.g. externalities, increasing returns to scale (failure of perfect competition), absence of futures and insurance markets, failure to attain full..
United States has absolute advantage over many countries in production of most goods and services. Yet, the country is running the record trade deficit year after year. The current trade deficit is about six percent of the country's GDP. Is it a ..
You are the holder of a variable-coupon bond that is convertible to a fixed-coupon bond. If you expect interest rates to rise, should you exercise your conversion option? Explain. What if you expect interest rates to fall?
Compute the change in total income which is P times Q moving
Draw a graph of the Batman family's supply of loanable funds curve fro 1999. Show the influence of this change on the Batman's supply of loanable funds curve.
Identify three separate things that you personally have purchased in the past month. Now, for each of those goods answer this question: If the price had been 50% higher would I still have bought that thing Or would I have said.
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