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Suppose there is a permanent increase in a country's saving rate. This increase in the saving rate will cause:
Answer
a permanently higher level of capital per worker.
a permanently higher level of output per capita.
a permanently faster growth rate of output.
both of the first two answers above
none of the above.
In the Keynesian view, would a constitutional amendment that would require the federal government to balance its budget (incur no deficit) be desirable? Explain your answer.
Draw an Edgeworth box with indifference curves through this endowment. At what combinations of X and Y are both better off (i.e., are Pareto Improving)? At what combinations of X and Y are there no more gains from trade (i.e., are Pareto Efficient)?
The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate the smallest integer price that would make a rm willing to produce a positive amount.
If you were desinging such an amendment, do you think it would be better to require that the actual budget deficit be kept at zero each year, or should the aim be only to keep the structural deficit at zero? Discuss.
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
he company will use the truck for eight years and will depreciate it over this period time with the SL method. What is the difference in the amount of depreciation that would be claimed in year five
The bank and pays interest at the market interest rate of 4 percent. Is it correct to say that the cost to Mary of living in her house is less than the cost to John.
Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
Explain Carver Memorial Hospital's surgeons have a new procedure that they think will decrease the time.
Illustrate what are the relationships between strong monotone and non-satiation. Also illustrate what are the relationships
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar?
show the effects of an increase in the Chinese purchases of U.S. Treasury bonds. How do these purchases affect the value of the dollar and of the yuan?
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