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Public Debt
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand.
Tasks:
Explain how each of the following will affect the net public debt, other things being equal:
Previously, the government operated with a balanced budget; however, recently, there has been a sudden increase in federal tax collections.
The federal government had been operating with a very small annual budget deficit until three successive hurricanes hit the Atlantic Coast, and now government spending has risen substantially.
The Government National Mortgage Association, a federal government agency that purchases specific types of home mortgages, buys U.S. Treasury bonds from another government agency.
All loans shall be computed at an annual percentage interest rate(APR) of 3.75%. It is assumed that you will need the loan for four years (eight semesters). You will not make any payments towards the principle of the loans while you are attending col..
Given the data below, use PRESENT WORTH ANALYSIS at a 15% interest rate to decide if method A or method B should be used. Method A: Initial capital cost of $100,000. Operating cost of $20,000 per year. Salvage value after 3 years is $20,000.
If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.
Find the Following: Average Product of Capital, Average Product of Labor, Marginal Product of Capital, and Marginal Product of Labor. Given: Q = 10 K^0.3 L^0.7.
Individuals filing federal income tax returns prior to March 31 received an average refund of $1056. Consider the population of "last-minute" filers who mail their tax return during the last five days of the income tax period.
If a firm adopts a production process that is costly in order to reduce pollution, the results
A large electronics company is organized into mainly profit-center divisions. The components division and the consumer electronics division are profit-center divisions of the company. The consumer electronics division assembles components into device..
Suppose a country's government is concerned about growing inequality of incomes and wants to undertake a program that will increase the total earnings of the unskilled. Extending employer payroll taxes to all earnings over $117,000 per year and incre..
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Suppose the market for a certain dosage of generic blood thinners has a supply described by P=1.88+2.62Q and a demand described by P=4.74-1.39Q. Calculate the equilibrium quantity?
What would be the percentage change in apple unit sales if the price of apples decreased by 10%? What would be the percentage change in apple unit sales if the price of pears increased by 5%? What would be the percentage change in apple unit sales if..
Basil Robekins has an idea for a new type of ice cream cone made from candy bars (like Butterfinger, etc.). He thinks his normal customers will buy more often because they can pick and choose from over 31 different candy bars and won't get bored with..
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