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Oligopoly problem - Let the profit and cost functions be p(yT) = 60 - yT, Each firms cost functions equal the square of its output.
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
suppose that the feds inflation target is 2 percent potential outlook growth is 3.5 percent and velocity is a function
assuming a 10% risk-free rate and a USD 110.00 debt due in one year, use the bond-spread approach of the Merton model to fill in the spread (in basis points) associated with the indicated level of the SPY investment in the table below: SPY value (..
If the MPC = 0.94, C 0 = 45, I = 150, G = 125, T = 75, X = 50 & IM = 60: Write out the consumption function. Compute the simple multiplier.
If the expected return of U.S. assets rises while returns on foreign investments remain unchanged, what should happen to the exchange rate? Why?
Define and explain three barriers to trade. What effect do these barriers to trade have on domestic consumer surplus? What is the Riccardo Effect in relation to specialization and exchange? Who benefits from specialization and exchange in terms..
Suppose that the reserves requirements for checking deposit is 10 percent and that banks do not hold any excess reserves. A. if the fed sells $1 million of government bonds,what is the effect on the economy's reserves and money supply
Discuss the implication on earnings and cash flow, and articulate why this project was chosen over the multitude of options that exists.
Suppose that the residents of Veggieland spend all of their income on cauliflower, broccoli, and carrots. then calculate the CPI in both years.
Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made..
Discuss the reason why governments might want to intervene and how they might do- with respect to the following "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:
What specific kinds of research, testing, or surveying might you have performed if you were the decision maker in a similar situation in the future What, if anything, would you do differently about the assumptions being made.
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