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1. Studies of family income over time reveal that:
most people in the lowest quintile tend to stay there over their lifetimes.
many people who move down the income ladder tend to be young.
many people who start out at the bottom of the income ladder when they are young move up the income ladder as they age.
2. When the FR Bank buys $1 worth of securities in the open market, in the simple multiplier model total deposits ___ by ___ than $1. Answer:
increase; less
increase; more
decrease; less
decrease; more
Suppose that you were a dictator. Describe a law that you could decree that would eliminate or reduce frictional unemployment but would likely reduce productivity, and explain why. Describe a law you could decree that would increase frictional unempl..
Welfare recipients would rather receive cash benefits than in-kind benefits, (medical care, housing assistance, food stamps), but much of the welfare system provides in-kind benefits. Is there a reason for not giving recipients their welfare benefits..
q. abc company expects that it will receive a large order from the spain government. but the order occurs abc will be
Compare two treatments. Treatment A provides an improvement of 0.1 QALYs at a cost of $2,000, whereas Treatment B provides an improvement of 0.2 QALYs at a cost of $5,000. Which treatment will planners prefer by cost-efficiency criteria?
Identify the conditions under which a firm operates as perfectly competitive, monopolistically competitive or a monopoly. Explain the concept and how to achieve competitive advantage.
Governments impose taxes for several reasons. The most obvious reason is to raise revenues for the government. If the goal of a government is to raise the maximum revenues, should a per unit tax be imposed on an item that has a price elasticity of de..
To get your MBA, you must take 20 courses. You can take 8 courses per year (2 courses per quarter including a summer semester). A course costs $3,500. Your company offers tuition reimbursement for 2 courses per term. Your company deposits $7,000 in a..
Desired Consumption and Investment are: C^d = 4000 - 4000r + .20Y & I^d = 2400 - 4000r. Find an equation relating desired national saving, S^d, to r & Y? What value of the real interest rate clears the goods market when Y = 10,000?
The costs of in?ation: Consider two possible in?ation scenarios. In one, the in?ation rate is 100% per year, but it has been at this level for three decades and the central bank says it will keep it there forever. In the other, the in?ation rate was ..
When the economy went into recession, the Federal Reserve took several actions in an effort to jumpstart the economy (lowering interest rates, purchasing U.S. Treasury bonds, etc.). Do you think those efforts were successful? Should similar or furthe..
q1. consider the economy as summarized by the above equations. assume which the mix of fiscal and monetary policies is
Do you agree or disagree that preventative services are a viable solution to cutting down on rising health care costs, and why or why not? Why do you think that not all insurance companies offer preventative services?
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