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Suppose household saving is $20, the government spending deficit is $4, and investment is $20.
a. What is national saving? b. What are net exports?c. What is net capital outflow?d. Does your answer to c indicate that the USis a net lender or a net borrower in international financial markets?
Draw their budget set (the combination of housing and other goods that they can afford) in housing-other goods space.
The opportunity cost of Juan's time is $8 per hour. If Juan receives $2 per pound for his fish, what is the optimal number of hours he should spend fishing.
Illustrate what happens to inflation is indeterminate; it could be either higher or lower than in the standard model.
Assuming that budget stays same except for interest on debt for 10 years, what will be accumulated debt? What will size of budget be after 10 years.
What can the central bank do, if anything, to counteract the short-run changes in output and prices? If the central bank does not take any policy actions, what will be the long-run impact of the electronic payments system on prices and output?
At the current price level, would it be viable for the firm to increase the price level of its brand of coffee. Support your answer.
Elucidate which of the following events would cause the price differences in these letters to get smaller.
indicating how it will influence your decision to open the pizza business in your town or community. Explain any additional variables that may improve the coefficient of determination.
It is a common belief that social security benefits will run out in the near future. How can we save social security?
This might be interpreted as an upward shift in the consumption function. Explain how does this shift affect investment and the interest rate.
You decide to start a business that provides computer consulting advice for students in ur residence hall. what would be an example of an implicit cost you would incur in operating this business ?
If labor productivity grew at the rate of 1.4% per year Illustrate what would average hourly compensation be in the year.
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