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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
Law of mass action states that at a constant temperature rate of a chemical reaction is directly proportional to product of active masses of the reactants raised to the power equal
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Q. Food purchases are relatively price inelastic since food is a necessity. If food is so required for life, how will we explain the heavy advertising of food items at the
4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector
Cardinal Theory: An Introduction In cardinal approach, utility is measured cardinally or numerically in terms of money. The consumer not only knows which one is preferred but
explain how a perfact market responds to changes in consumer demand?
a) Joan's utility function can roughly be estimated as : U = 60Q 1 3/4 Q 2 2/3 She chooses from two composite commodities Q 1 and Q 2 whose prices per unit are kshs 20
Crumble Corporation produces cookies. Here is the relationship between the number of workers and output (in dozens of cookies) in a given day: Workers Output Marginal Product T
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What is Demand Forecasting? Explain in brief various methods of forecasting Demand.
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