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Which of the following policies would be expected to increase private saving?
A) Replacing the income tax with a consumption tax
B) Increasing the tax rate on capital gains
C) Providing more generous Social Security retirement benefits
D) Reducing the size of down payments needed to buy a house
The first national bank received 3,000 inquiries following the latest advertisement decribing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional b..
Proponents of a government-run health care system argue that the market does not work well in the medical care industry. What evidence do they use to support this claim? In what sense is health care an investment? In what sense is it pure consumption..
In a local market, the price of product X decreases from $20 to $12, and the total quantity of monthly accounts increases from 100,000 to 225,000 In a local market, the price of product X decreases from $20 to $12, and the total quantity of monthly a..
Suppose a firm's demand curve is given by P = 120 - 0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or inelastic?
A very small economy has a population of 1,000 people who work. Of these , 800 have jobs and 100 are looking for work. The rest are willing to work but have given up looking because they haven't been able to find work for a long time. What is the siz..
Compute the equilibrium level of income for the open economy aggregate expenditure model.
Two suppliers have been contracted by a government agency to provide a total of 250 hours of training services to help agency employees learn how to use a new computer system. The marginal cost curve of firm 1 is MC1=15+.4Q1, while the marginal cost ..
Prepare a CPM/PERT chart and determine project duration based on normal project duration (using Normal Time) Prepare a CPM/PERT chart and determine the shortest time this project can be completed taking (using Crash Time).
An alternative requires $30203 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.
As per the discussion in the textbook, smoking is on the decline in high-income countries where the combination of longer life expectancy, education, income, and legal action has created a powerful anti-smoking campaign. Is this targeting by global t..
The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn't bring in enough customers, then he'll cut prices 20 percent. Increased cash flow should take care..
The Federal Reserve Bank of St. Louis maintains a Web page devoted to international economic trends.
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