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Suppose that permanent income is find outd as the average of income over the past five years; that is Yp=(Y1+Y2+Y3+Y4+Y5)/5. Suppose further that consumption is given by C=0.9YP.
a) If you have earned $20,000 per year for the past 10 years, what is your permanent income? b) Suppose that next year you earn $30,000. What is your new Yp? c) What is your consumption this year and next year? d) What is your short-run MPC? And long-run MPC?
Illustrate what is the expected interest rate that will be charged by a bank that cannot exactly distinguish.
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Economic, Political and Contagion should the United States should be worried about what is happening in small countries such as Greece why or why not
Could you help me by answering in paragraphs and also can you provide me the sources and how to locate the article.
Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong and Singapore? Explain the rationale for your choice.
OPEC is the economist's favorite cartel to study, partly because it had such a spectacular short-run success and partly because oligopoly theory could be used to predict how OPEC pricing actually evolved. Research some recent developments in petro..
Suppose that a small town uses a referendum to overcome free ridership problem & determine how its residents might value a new water filtration system for its public water supply.
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Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
If a industry wants to raise total sales revenue. What happens to the demand for beer if the price of soda falls.
Write a brief description of the fiscal policy of the United States and would you describe it as "expansionary" or "contractionary"?
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