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1. (Crowding Out) How might federal deficits crowd out private domestic investment? How could this crowding out affect future living standards?
2. (Interest on the Debt)Why did interest payments on the national debt fall from 15.4 percent of the federal budget in 1996 to 6.7 percent in 2004.Why is this percentage expected to increase in the future?
Jon Breeks quit his job in a bicycle shop, where he earned $15,000 per year, to become a graduate student in economics. At the university he attended, he spent $2,000 on books, $1,000 on cough medicine, and earned $12,000 as an economics instructo..
The poverty rate would be substantially lower if the market value of in-kind transfers were added family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipient..
Use this production function to express the output-labor ratio as a function of the capital-labor ratio. Discuss the properties of the function derived.
Consider a farm with 1500 acres total where 1000 acres are in wheat and 500 are in soybeans. Wheat yield is 90 bushels/acre, wheat price is $3/bushel, and total operating expenses per acre are $100. Soybean yields are 35 bushels/acre, soybean pric..
What is the effect on output? What government policy response would you recommend?
Suppose the cross-price elasticity of demand between goods X and Y is -5. How much would the price of good Y have to change in order to increase the consumption of good X by 50 percent
Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount There is a recessionary output OR gap inflationary output gap of $.
Your car dealer is willing to lease you a new car for $245 a month for 48 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 6.5 percent, what is the current value of..
Perform a t test on the slope coefficient and the intercept of the educational attainment function fitted using your EAEF data set, and state your conclusions.
Hermione received an inheritance of $1 million. She decided to use the money to purchase a small magical potions business in HogsHamlet, United Kingdom. If Hermione had invested the $1 million in a risk free bond fund she could have made $50,000 e..
in short run total cost,variable cost,and fixed cost curves and in the other,the short run marginal cost,average total cost,average variable cost,and average fixed cost.
The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year of education has a marginal external benefit to society equal to $8,000.
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