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The stability of fiscal policy. (Blinder and Solow, 1973.) By definition, the budget deficit equals the rate of change of the amount of debt outstanding: δ(t)=?(t). Define d(t) to be the ratio of debt to output: d(t)=D(t)Y(t). Assume that Y(t) grows at a constant rate g>0.
(a) Suppose that the deficit-to-output ratio is constant: δ(t)Y(t)=a, where a>0.
(i) Find an expression for ?(t) in terms of a, g, and d(t).
Firms hurt by lower priced imports typically argue that restricting trade will save U.S. jobs. What's a wrong with this argument? Are there ever any reasons to support such trade restrictions?
From the items below that will no longer be needed, which one is most likely to result in the most costs savings?
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How much of each good does Alice buy as well as how much does she work.
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The Albert Cuyp market here, famous for its offerings of cheap clothing and exotic foods, is one of the busiest in the Netherlands. But while it still attracts plenty of shoppers, customers are increasingly wary of spending their money there, said Ni..
Barb age 25, files as a single taxpayer. She is employed at a monthly salary of $2,150. She claims no dependents. Her employer withheld $1,600 from her wages for income taxes for 12 months' of work. Compute of Barb’s income tax due to or from the IRS..
In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?
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