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1. All else equal, what effect will an expansionary fiscal policy have on the money market, and how will this change impact the effectiveness of the fiscal policy? Draw a graph to illustrate your answer.
2. Explain the differences between the transaction motive for holding money and the speculation motive for holding money.
How does releasing all locks at the end of a transaction relate to two-phase locking?
Traditional free-trade theories are based on six crucial assumptions, which may or may not be valid for developing nations (or for developed nations for that matter). What are these crucial assumptions, and how might they be violated in the real w..
If the Canadian production function is Cobb-Douglas with capital's share in total output 0.3, output growth is 3 percent per year, depreciation is 4 percent per year, and the capital-output ratio is 2.5,
Perform a Durbin-Watson test at the .05 level testing that there is positive serial correlation. Be sure to report the lower and upper limit critical values and test statistic. What is your decision, and what does this mean?
The variance of X is equal to 33.25 and the population variance of u is equal to 160,000. Using equation (3.29), show that the standard deviation of the probability density function of the coefficient of X is equal to 15.5. Are the standard errors..
Write down the critical value of the test statistic at the five percent level of significance and carry out the test. What do you conclude about serial correlation?
Len's body board factory pays $60 a day for equipment and $200 a day to each student it hires. Table 1 sets out Len's total product schedule.
Suppose the velocity is constant and the economy's output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level next year if the FED keeps the money supply constant.
Like Physical capital, human capital produced in the present can be applied to the production of future goods and services. consider the table in Problem, 2-11, and suppose that the nation's residents are trying to choose between combination C and..
Explain the effect of a large increase in foreign immigrants who are largely poor, unskilled workers on the market for low-skilled labor. Explain how better access to education would change New York's income gap.
Consider a person who can work up to 80 hours each week at a pretax wage of $20 per hour but faces a constant 20 percent payroll tax. Under these conditions, the worker maximizes her utility by choosing to work 50 hours each week.
The cross section of a brass tube is an equilateral triangle with a constant wall thickness, as shown in the figure. If the shear stress is limited to 8 ksi and the angle of twist is not to exceed 2° per foot length, determine the largest allowabl..
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