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Let's say the Fed expects an undesired decrease in aggregate expenditures this year. In order to offset that decrease, the Fed should: A. increase the discount rate. B. increase the required reserve ratio. C. engage in open market purchases of government securities. D. engage in open market sales of government securities.
Suppose that the government levies a tax on oil companies equal to a proportion of the value of the company’s oil reserves. (The government assures the firms that the tax is for one time only.) According to the neoclassical model, what effect will th..
In market economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the difference.
The demand for Pepsi is more elastic Than the demand for soda. The effect of taxing demanders are the same as taxing suppliers.
NPV and IRR: Under which circumstances can the NPV and IRR calculations lead to conflicting results? Differences: What is the major reason for the difference? Preferable Methods: Which of the two methods is preferable? Why? Use examples and plots wit..
Describe elderly individuals who complain about the increasing cost of their medications have no real complaint.
Question 1: Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 80 - Q and both firms have constant marginal cost of 60.
An emissions fee is paid to the government, whereas an injurer, who issued and held liable, pays damages directly to the party harmed by an externality. What differences in the behavior of the victims might you expect to arise under these two arr..
Which of the following expenditures are not included in the consumption component of GDP?
Why do some low-wage countries, such as China, pose a threat to manufacturers in industrial countries, such as the United States, whereas other low-wage countries, such as Haiti, do not?
draw the indifference curve for someone deciding how to allocate time between work and leisure. suppose the wage increases. is it possible that the person's consumption would fall? is this plausible?
Suppose that one must divide $1,000 among 100 students. Which divisions are efficient?
Are international strategies always just a special case of diversification strategies that a firm might pursue? What, if anything, is different about international strategies and diversification strategies?
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