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1. What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts:
2. Why are consumers considered to be risk averse? What methods could used to deal with risk?
3. It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy?
4.What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics?
5. If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?
Illustrate what amount should Kilarny Company pay for this investment if it earns a 6% return. What cash proceeds did Galway Bay receive from issuance of the bonds.
The Kinked demand curve in an oligoolistic market is represented by the following:P = 100- Q and P = 120-2*Q
How does a generic drug differ from its brand name, previously patented equivalent Explain why the price of a brand name drug typically declines when an equivalent generic drug becomes available Explain how that drop in price affects allocative ..
Suppose that the exchange rate between the Russian ruble and the U.S. dollar is currently $0.03 to the ruble. The one year forward rate for the ruble is $0.025 dollars to the ruble. If Russian inflation is 20% what is the approximate U.S. inflation r..
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Any change in the economy's total expenditures would be expected to translate into a change in GDP that was larger than the initial change in spending. This phenomenon is known as the multiplier effect. Explain how the multiplier effect works. (c..
Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their fares 10 percent, and they anticipated that revenues would increase by about 10 percent as a result.
Make sure you give complete definitions andexplanations for this set of questions. When dealing with thedecrease in income, you will want to talk about the effects on thebudget constraint and the consumption bundle of the consumer. Remember, there ar..
The technology helps to grow productivity, which in turn frees up resources - permit interest rates to remain lower than otherwise possible. But i am not sure how increased productivity drives economic growth.
Illustrate what objectives are pursued by members of the OPEC cartel. Discuss what actions they can take to achieve these objectives.
Briefly explain whether you agree or disagree with the following statement '' Assets are things of value that people own . Liabilities are debts . Therefore a bank will always consider a checking account deposit to be an asset , and a car loan to ..
Illustrate the price elasticity of demand at the equilibrium price and quantity.What is the price elasticity of supply at the equilibrium price and quantity.
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