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In the 2010, the U.S. government ran a budget deficit. It issued a large quantity of bonds. How would this program affect the bond market price, yield, and quantity of bonds? How might it affect the liquidity of government bonds?
Assume beer is an inferior good and the price of beer falls, then the substitution effect results in the person buying (less/more) of the good and income effect results in the person buying (less/more) of the good.
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 ..
Studies have shown a link between rising debt-to- GDP ratios and real interest rates. Investment is not the only category of spending that might be sensitive to interest rates.
For ever of the situations, decide whether Al has increasing, constant, or diminishing marginal utility.
Exports and imports total in the billions of dollars for each country. Explain what this tells you about our society.
Elucidate how these economic concepts can be used to address the firm's problems and opportunities.
assume that country a has a population of 500000 and only produces one good-cars. country a produces 100000 cars per
1. the price of french fries falls by 10 per cent and quantity of french fries demanded increases by 12 per cent. we
Assume an economy in long and short run equilibrium in the Aggregate Deamnd/Aggregate Supply model. There is a sudden drop in consumer confidence in the solvency of pension funds. Explain, with support from a graph, how this is shown in the AD/AS ..
If the market price is below shut-down, regardless of fixed costs, explain why the firm should shut down.
Using an IS-LM diagram analyze what would happen to the economy if both consumer and business confidence decrease dramatically. Which policy mix would you advocate? Explain using a diagram.
Identify the three most important expenditure programs of the federal government. Explain how they differ from the three most important expenditure programs of state and local governments?
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