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Expansionary policies are designed to stimulate the economy by increasing aggregate output. Explain why expansionary fiscal policy and expansionary monetary policy have opposite effects on the interest rate despite having the same goal of increasing aggregate output. Illustrate your answer with graphs of the money market.
Show that income per capita is always higher in country 2 than in country 1.
a young engineer wishes to become a millionaire by the time he is 60 years old. he believes that by careful investment he can obtain a 15 percent rate of return. he plans to add a uniform sum of money to his investment program each year
This year they reported to the board of directors that there was a material weakness in Nordtek's safeguarding of inventory because the storerooms were unlocked and there were no checks on those who entered or left the premises.
Using your answer to question above, compute the value of the multiplier. Using your answer to the question above, calculate the amount of the change in the equilibrium level of Real GDP due to a $100 increase in investment expenditures.
Are we certain that a decrease in the tax rate on interest earned from saving will increase the quantity of saving? Explain.
Firm K can earn $25 million in profits from strategy S if firm L responds with strategy P, and $7.5 million in profit from S if L responds with strategy Q. Firm K can follow strategy T, which returns $16 million if firm L responds with strategy P ..
The price demand equation for 14- cubic-foot refrigerators at an appliance store is where x is the monthly demand and p is the price in dollars.
If the labor market always clears, is there any unemployment? Any cyclical unemployment? What does it mean for the labor market "not to clear"?
If the market for a certain product experiences an increase in supply and a decrease in demand, which of the following results is expected to occur?
Today the XYZ Corporation shipped goods value at 1 million Euros, to a customer in Belgium. Payment is due in 90 days, and the Belgium firm will make the payment in euros. Today spot rate is euros1 / $ 1.25. The 90 day forward rate is euros1 / $1...
Suppose that the total benefit and total cost from an activity are, respectively, given by the following equations: B(Q) = 28Q - 5Q^2 and C(Q) = 100 + 8Q. (Note: MB(Q) = 28 - 10Q and MC(Q) - 8.)
If the theater is open, the owners have to pay a fixed nightly amount of $500 to show a film. In addition, the movie house incurs an additional cost of two dollars for each person that attends a movie.
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