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Assume the equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C= 500 + 0.6(Y-T). Taxes (T) are equal to 1,000. Government spending is 600. In this case equilibrium investment is?
What is the difference between the rate of return between dollar and euro deposits? Is the prevailing exchange rate at an equilibrium level?
Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one ..
Informal financial institutions and its system are important in serving the group at the bottom of the income pyramid. Explain the characteristics of informal financial institutions and the importance of its financial systems.
Are there any nice examples of firms using attachment bias to increase profits? Examples from the academic literature or well-motivated anecdotes are both acceptable. For instance, pet stores seem to let you play with the animals and GM used to have ..
Consider the economy described in Box 1. Consider also a “balanced budget” increase in G and T (in other words, G and T both rise by the same amount). Each increase of 1 unit in G and T will a) increase r by .005 b) increase r by .015 c) decrease r b..
Read a full plot summary of the movie Double Jeopardy. In a one- to two-page (250- to 500-word) paper, give your assessment as to whether the "double jeopardy" clause of the Fifth Amendment to the U.S. Constitution would protect the character Libby (..
What do real interest rates account for that nominal interest rates do not? The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________. A higher interest rate makes more attractive. Ther..
q1. illustrate what is the meaning of economies of scope and explain how do they differ from economies of
One reason for Anti-Trust laws is that economic concentration of power (Monopoly or oligopoly) comes with concentration of political power.
Consider an issue that is important to your field of study. Find two (2) Web sites that discuss this issue and compare the Web sites in terms of their appropriateness for graduate-level research
There are two stocks in an economy. If they buy a share of stock A, they have a 60% chance of getting $50 next year and a 40% chance of getting $30. Stock B has a 10% chance of getting $200 and a 90% chance of getting $31. If the consumer must buy 2 ..
Describe an environment in which permit trading can contribute to economic efficiency. How do permits make such a contribution Why in a traditional model are permits and Pigouvian taxes considered equivalent in implementation? Give a reason that in p..
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