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The uninitiated might look at trading in futures and forwards contracts as Wall Street's way of just conducting an elaborate gambling operation, with bettors laying money on the direction of commodities, stocks, or other assets. How much of that is true? Or is there something more meaningful about this activity? What is the value of these activities to individual portfolios and the economy in general?
What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save?
Under current law, most Social Security recipients do not pay federal or state income taxes on their Social Security benefits. Suppose the government proposes to tax these benefits at the same rate as other types of income.
Illustrate what is the demand and supply for labor in the unionized sector. Any surplus migrates to the uncovered sector. What is the new equilibrium wage and labor utilization in that sector.
Show analytically and show graphically that, in Keynesian consumption function, the average propensity of consumption is always bigger that marginal propensity
If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the aggregate price level Explain why it is important to insulate central bankers from politic..
Assume labor's share of GDP is 70% and capital's is 30%, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3%.
In our look at democracy and sovereignty, one of the things that we observed is that we are seeing a rise of subnational groups in countries around the world. How does one reconcile this apparent trend with the accusation that globalization is le..
Estimate the linear trend in the data, and use it to forecast gasoline sales in the United States in each quarter of 1990.
Illustrtae what is the Nash equilibrium without an enforceable contract. Explain why this is the likely outcome.
Illustrate why is strategic interdependence important for the market structure of oligopolies. What happens in the market for oranges if there is a hurricane that destroys the orange crop.
Soft selling occurs when a buyer is skeptical of the quality or usefulness of a product or service.Instead of asking for a price, offer to give them the product in exchange for 50% of their cost savings.
A firm uses two inputs, unskilled labor (L) and capital (K) to produce its product. The wage rate for one unit of labor is $5, while units of capital cost $20.
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