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suppose a new technology is developed that increases investment demand in both a closed economy and in a small open economy that are in other ways identical. Holding other factors constant , will the quantity of investment spending increase more in the closed economy or in the small open economy? explain. assume prices are flexible and that factors of production are fully employed in both economies. Assume there is perfect capital mobility for the small open economy.
Suppose the government is concerned that the going wage rate of $6 per hour for low skilled workers is too low.
Draw indifference curves to represent the following types of consumer preferences-I like peanut butter, but neither like nor dislike jelly.
Many states give companies with an investment tax credit that effectively decrease the value of capital. In theory these credits are designed to stimulate new investment and thus create jobs.
What is the real mortgage interest rate in 2001, 2002, 2003 and 2004, what are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004?
Despite being a major industrial force in Korea, several of the company's divisions are unprofitable, or "bleeding red ink" in the words of the article. Indeed, last year the power plant and oil refineries building division recorded a $105 million..
Explain why do people who work at investment banks earn so much. What is the justification for capital requirements imposed by bank regulators.
In response to climate change concerns, the government can either invest in mitigation or adaptation or do nothing. Mitigation reduces the flow of carbon into the atmosphere, thereby changing the probability distribution of future climate states. ..
The chance that the price of a college education will be the same 18 years from now as it is today seems remote. Assuming that the price will rise 3% per year, and that today's interest rate is 8 percent, what will your friend's investment need to..
If the Federal Government is giving more than it receives in tax revenues in an effort to reduce unemployment
What is the income gap for the bank? What will happen to profits next year if interest rates fall by 3 percentage points?
Choose a firm with operations. Discuss the company's activities outsize the United States and identify which economic concepts, sure as comparative advantage, apply to your company.
Gabriella often faces a trade-off between time at the beach and time working as a model. She earns $40 per hour as a model and values going to the beach at the same price. When explaining this to her parents she says.
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