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Desired consumption and investment are Cd = 4000 - 4000r + 0.20Y; Id = 2400 - 4000r. As usual, Y is output and r is the real interest rate. Government purchases, G, are 2000.
d. Given the consumption function, what the value of the MPC?
e. Given the saving function you derived in part a, what’s the value of the slope of the saving curve?
f. Given the saving function you derived in part a and the investment function, what’s the value of the slope of the IS curve?
Management in a Foreign Country Research business
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What is the largest constant consumption stream you can afford?
For several decades the labor force participation rate of women increased steadily but average hours worked per employed woman decreased steadily. Holding all other factors constant could rising wage rates of women explain both phenomena? Explain.
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Consider a homogeneous good market with the following market demand curve: Q = 8 − p, 0 ≤ p ≤ 8 = 0, p > 8. Two firms produce output at constant marginal cost which may be different. Derive the Nash equilibrium outcome and the profits of the two firm..
Three mutually exclusive projects are being considered for a remote river valley: Project R, a recreational facility, has estimated benefits of $10 million and costs of $8 million; Calculate the benefit-cost ratio and net benefits for each possible a..
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