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Assume that production in the United States is valued at $10,000. National income is therefore $10,000. Of their income, workers pay $1,000 in taxes, save $500, spend $8,000 on consumer goods, and spend $500 on imports. Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:
a. 0
b. $500 surplus
c. $500 deficit
d. $1,000 deficit
e. $2,000 deficit
Disscuss the contrasting views of the Keynesians and the monetarists with regard to an appropriate.
On December 29, the cost of a skiing trip to Finse, Norway, was 6,500 krone. Two weeks later, the American dollar appreciated against the Norwegian krone. If the price of the trip in Norway remains the same: A)an American skier living in Florida will..
one possible method of determining a group preference relation is the borda count. the way it works is that each voter
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Monetary approach, elucidate the process by which a balance of payments deficit is corrected under a flexible exchange rate system?
When McDonald’s Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink.
(Elasticity and Total Revenue) Explain the relationship between the price elasticity of demand and total revenue. (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more elastic over a shorter or a longer per..
According to moderate growth your return will be 8 percent. If there is a rapid expansion, your portfolio will return 15 percent.
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