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1. Why is the interest rate on a credit card usually higher than the interest rate on an automobile loan?
2. Why is the interest rate on a security sold by a city government usually less than the interest rate on a security sold by a corporation if both have comparable default risk?
3. During recessions, do expected real interest rates increase or decrease? Explain why. What as the major forces acting on expected real interest rates in recessions?
4. Describe two ways the government could eliminate the interaction of inflation with the tax system.
A price floor is set by the government to protect the producer of the good to which price floor has been attached. There're two possible outcomes for market in price floor setting.
Do consumers of public goods have the same incentives to reveal their true valuations of Public goods as they do of Private goods? Why or why not?
What is Gross Domestic Product, and why is it important for national economies?
A survey of 800 workers indicated that approximately 465 have invested in an individual retirement account. Motional data suggests that 48% of workers invest in individual retirement accounts. Test an appropriate hypothesis with a=0.05 and state your..
What do the behavior genetics research on family influences and the evolutionary explanation of sex differences imply about the amount of influence parental behavior has on how masculine or feminine their sons and daughters become?
how does a government budget deficit affect the economy? identify two periods in recent history in which the united
a firm has two divisions each of which has its own manager. managers of these divisions are paid according to their
If college education generates a positive externality, show graphically the social loss associated with the private market outcome of college education. Are there any interventions that would be useful to address the externality
Suppose that households in the US switched some of their wealth out of their checking accounts and into short term bank CD's. If banks use all excess reserves to support increased lending, what is the effect on this household behaviour on the overall..
Which of these two approaches are preferable(explain them).State the crdinalist and ordinalist conditions for consumer equilibrium.
The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the.
1.Identify and discuss three (3) externalities, which can either be positive or negative.
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