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ref article :https://www.economist.com/news/finance-and-economics/21587795-if-congress-fails-lift-limit-americas-debts-consequences-are
a.assume that the debt ceiling crisis did not result in an agreement that the US was “ no longer able to borrow” Draw a graph of the financial market and show the impact of just this situation,what impact does that have on interest rates and private investment?
b.whatwill happen to government spending in the economy and compare that with the size of what you have explained will happen to private investment? what would happen to overall demand in the economy in the short run?
c.Further on in the article they explain that "it american defaults, lenders may refuse treasuries as collateral becoz they cannot be sure than everyone else would accept them.." draw a graph of US financial market and explain what happen to interest rates and private investment if foreign banks decided not to use treasuries a s collateral.
d. draw a generic graph of a foreign financial market and demonstrate what happen when foreign financial institutions might start hoarding funds, causing markets to seize up
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Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produc
What is use of analytical tools in the modern economics? Analytical Tools: Modern economics also gives different powerful analytical tools which are usually specified by geo
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1) The $787 billion stimulus package, "American Recovery and Reinvestment Act" passed in Winter 2009 contained a mix of tax rebates, tax credits and increases in various transfer p
Supply and demand for a given type of MP3 player are given by the following equations: P=980-1.5Qd P=20+0.9Qs
indifference curve for the demand for big macs
5 stratgies that can be used to regulate skilled labour in developing countries
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