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Some have argued in favor of reducing taxes on repatriated earnings that companies operating in the United States have made in other countries. Such a tax break could lead to a sharp increase in the amount of repatriated earnings and raise tax revenues. If such an increase were temporary, what would be the effect on the real budget deficit for the current year? What would be the effect on the structural deficit (cyclically adjusted deficit)? Explain.
q1. confronted with a choice between 50 today or 100 one year from now economic experts suggest that the vast majority
If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
Generate a PDF and CDF using the simulation function in simetar for the random variable X that follows a normal distribution with a mean of 20 and a standard deviation of 4. Remember that simetar uses the standard deviation to produce the distributio..
"Neither monetary policy nor fiscal policy alone can be effective in formulating sound economic policies for recession." Do you agree or disagree?
Consider the market for electronics. Patents are granted to investors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy, without the existence of patents; it is argued that research a..
Acme Universal is a micro-cap that had a $3,000,000 drop in taxable income this year. Their drop in taxes was $1,030,000. For each of the following, determine the largest amount that meets the conditions given above.
One of the impacts that can erode the standard of living is inflation. The gov't uses the CPI to measure inflation. What is the CPI? How is it calculated? What are the uses of the information?
In addition to reviewing all the course materials, you should view the movie Inside Job, which is a look at corporate accountability regarding the ongoing international financial crisis. Incorporating facts and ideas presented in the course, includin..
The following equations apply to an economy: C=400+.9(Y-T) I=250-50r (M/P)d=Y-300r You also know that government spending and taxes are 500 and the nominal money supply is 4000. The price level is 2. Make sure you simplify your equations. What are th..
Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium (call it point A). Be sure to include both short-run and long-run aggregate supply
A sinking fund is established by Alliance, Inc., at 8% interest compounded semiannually to meet a financial obligation of $1,800,000 in 4 years. What periodic sinking fund payment is required every 6-months to reach the company's goal?
Elucidate the differences among a currency board, a fixed exchange rate system and a pegged exchange rate.
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