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Suppose the savings rates by income quartiles in Indonesia are given by the following:1st quartile - 5% savings rate2nd quartile- 7% savings rate3rd quartile- 10% savings rate4th quartile - 20% savings rate
A). Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis.
B). Will a government policy to redistribute income to achieve less income inequality potentially help or hurt growth in this case? Illustrate your answer graphically.
Illustrate what is the adjustment mechanism under a flexible exchange rate regime. Illustrate and explain which curve(s) will shift during the adjustment.
Using Bureau of Labor Statistics and Federal Reserve Bank of St. Louis, choose a key economic indicator. Discuss and explain how the indicator was created and its current value.
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will happen to savings and investment according to the classical economists?
Outdoor Sports Corporation, with its main office in Iowa, is considering opening a branch office in Los Angeles. Under normal economic conditions, which have a 45 percent chance of occurring,
After two years the City of Plentiful is faced with a fiscal crisis and decides that it wants its garbage back.
Illustrate what is the elasticity of demand for the product that is produced by the company.
A monopolist produces according to the following demand curve: p=200 - 4Q. Assume that the firm faces a constant marginal cost and constant average total cost of 60 per unit produced. A.calculate the optimal output that this monopolist should prod..
Suppose government increases autonomous taxes and defence expenditure by the same amount. Will real GDP increase in the short run? Why?
Starting anew from the equilibrium in part a., suppose that the cost of raw material used in the production of this good increases (assume nothing else has changed). Draw a diagram comparing the effect of the increase in the cost of materials in t..
Fiscal policy also decrease the dollar like monetary policy.
What are the advantages and disadvantages of using an expansionary monetary policy in a recession compared to using fiscal policy? (Please note: I am not asking you how monetary policy works. You have already answered it in part c above. The quest..
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