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Suppose the price level and value of the U.S. dollar in year one are 1 and $1.00, respectively.
A. If the price level rises to 1.25 in year two, what is the new value of the dollar?
B. If, instead, the price level falls to 0.50, what is the value of the dollar?
In the same context of Q6 above, briefly explain why the prices of Short Term US treasury securities are still high enough to keep the interest low enough despite the fact that the US Bond rating has been downgraded from AAA status to AA+ by S&P in J..
Give two reasons why the marginal cost curve is upward sloping. You will want to use a graph(s) as part of your answer. Be sure to explain in words what your graph(s) are showing.
Your firm’s research department has estimated your total revenues to be R(Q) = 600Q – 4Q2 and your total costs to be 60 + 2Q2. (Note that MB = 600 - 8Q and MC = 4Q). What level of Q maximized net benefits? What is marginal benefit at this level of Q?
A bond was purchased for $2100.Intrest of $110 was paid every 6 months. The bond was sold at the end of the third year for $2000.What is the annual effective rate of return earned on this bond?
Discuss one example of how the federal government intervened in the state of Texas with regard to the protection of civil rights and civil liberties. Please be specific and give details of how the Federal Government stepped in to protect the rights o..
Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?
The five basi modes of transportation have been available for well over 50 years. Is this the way it will be always be, or can you identify a sixth mode that may become economically feasible in the foreseeable future?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
Explain why there is a natural unemployment deficit. Compute the amount of the natural employment deficit in terms of both billions of dollars and as a percent of natural real GDP.
You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry. One of your two companies can be the same compa..
Assume the money supply is $800, the velocity of money is 7, and the price level is $2. Using the quantity theory of money: Determine the level of real output. Determine the level of nominal output.
Other things being equal, woudl this tend to increase planned expenditure in the United States by exactly, more than, or less than $50,000? Would it shift the aggregate demand curve to the right, the left or not at all? Explain in detail.
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