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Multiplier effects are stronger if
a. people save less as percentage of income.
b. people pay more in taxes as percentage of income.
c. people pay more for imports as percentage of income.
d. interest rates are high.
A pure monopolist determines that at the current level of output the marginal cost of production is $2, average variable costs are $2.75, and average total costs are $2.95. The marginal revenue is $2.75. What would you recommend that the monopolist..
q.assume that in a certain region there is a single firm producing chocolates nestlex. in this region there is a
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium price, quantity and consumer surplus?
Explain the strengths and weaknesses of using monetary policy in comparison to fiscal policy when promoting economic activity.
A company expects to achieve cost savings of $4,500 the first year and amounts increasing by $800 each year for the next 5 years. At an interest rate of 10% per year, what is the total present worth of the savings?
If amazon.com's revenue increased after it cut the price of books, dvds, and blu-rays what must be true about the price elasticity of demand for ordering these goods online?
Many people feel the Fed, which is largely independent of Congress and the President, is too powerful. In fact, the Chairman of the Fed Board of Governors, Ben Bernanke, has been called the second most powerful person in the country. Do you think the..
how will the quantity of aggregate output supplied respond to the fall in prices. Illustrate what will happen when firms and workers renegotiate their wages.
Bertie’s Boards has 2 factories in Malibu and Denver that were originally dedicated solely to skateboard production. As it turns out though, each of the factories could be used to produce both skateboards and surfboards. Draw the overall production p..
Does the patent system encourage duplicative efforts solely for the chance to be first.
A stockbroker has proposed two investments in low rated corporate bonds paying high interest rates and selling at steep discounts (junk bonds). The bonds are rated as equally risky and both mature in 15 years. bond statevalue annual interest payment ..
Should we remove all barriers to immigration into the United States? What would be the outcome? If we could let in an extra hundred thousand immigrants every year, should we favor certain immigrants over others? Why?
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