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Why does a smaller marginal propensity to consume (e.g., a higher savings rate) result in higher steady state consumption?
300 words........
Outline a micro-economic reform issue that is relevant to the Australian economy (i.e. why has there been reform in this industry or market? How successful do you think these reform measures were and say why referring to some data or research that ha..
Assume stock returns can be explained through the following three factor model:
For each of the following events, use the subsequent graph to illustrate the short-run effect on aggregate supply and aggregate demand. Households decide to save a larger share of their income.
Assume that starting salary for an SDSM&T Industrial Engineering graduate is $56000/year, and that the engineer will work for 30 years before retiring. At 4% inflation (treat as interest), would it be better to negotiate a $5600 per year raise, or a ..
If a producer offers a price that is below a consumer's valuation of the good, the consumer:
(All numbers in the thousands) In May 2015, the civilian non-institutional population was 250,455. The number of employed workers was 148,795. The number of unemployed workers was 8,674. The number not in the labor force is 92,986. What was the unemp..
A country has national saving of $80 billion, government expenditures of $40 billion, domestic investment of $60 billion, and net capital outflow of $20 billion. What is its demand for loanable funds?
q.1. a. differentiate between monetary policy instruments and monetary policy toolsb. describe the two key tools of
Find the Herfindahl index for an industry composed of (a) three firms- one with 70 percent of the market, and the other tow with 20 and 10 percent of the market
A local cell phone monopoly faces the following monthly inverse-demand for lines from a typical family: P = 100 – 20Q. The total cost to the monopoly is C(Q) = 20Q. This implies that the marginal monthly cost to the monopoly is $20 per line. How many..
Suppose that in the United States corn production uses land and labor, while beer production uses capital and labor. Labor is mobile between the corn and beer industries, while land is specific to the corn industry and capital is specific to the beer..
Discuss the effects of a tightening monetary policy in the short-run and the long-run? What are the key assumptions in both scenarios? What are the appropriate models to distinguish the short run and long-run effects of a tightened monetary policy? W..
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