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If the MPC=0.8 and planned autonomous investment increases by $80 billion, then equilibrium real GDP will increase by
A. $400 billion
B. $80 billion
C. $320 billion
D. $64 billion
Read the case "Federal Indebtedness is Much Higher Than the Net Public Debt" on page 313 and discuss the following issue: How could the federal government try to reduce its entitlement indebtedness (the difference between entitlement program spending..
Suppose market demand and supply are given by Qd=100-2P and Qs=5+3p. If a price floor of $30 is set, what will be size of the resulting surplus?
In an investment set up as a perpetual trust, the annual disbursement for the first 10 years is $10,000. If the trust is set up initially with $100,000, determine the disbursement that can be made from year 11 through infinity if the interest earned ..
Which of the following government actions promotes monopolistic behavior?
Suppose the MCs for the following two tennis ball suppliers: MC1=3+0.5Qs, MC2=5+0.5Qs. Drive and graph the aggregate supply curve. If the price of the product is $4 per unit, can each of these producers stay in business?If yes, how much will each pro..
Elucidate why would elasticity of demand be important to you in determining the products on which the taxes should be levied.
As real interest rate rises, the quantity of loanable funds supplied _____ and the quantity of loanable funds demanded _____
You have a gross income of $386200 in 2014. Your filing status is married filing jointly. You might itemize deductions and you are allowed 5 exemptions. During the year you donated 3.3% of your gross income to charity and you have an interest-only mo..
What is the purpose of the term sheet and why is it important? Be sure to write a detailed long essay to this question. Think about who the term sheet is written for, why it is written, and what does it need to convey.
Find the mean and standard deviation of team payroll for the 14 American League and the 16 national League teams.
What can be said about the benefits and problems of each dimension (economic, cultural, political and environmental) of globalization? Is globalization a positive force overall?
The steepness (slope) of an indifference curve indicates which of the following?
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