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Many people have argued about the wisdom of the "TARP" program that was implemented late in the Presidential term of President George W. Bush with the full approval of the Congress. One of the main features of the program resulted in the Treasury department purchasing hundreds of billions of dollars of assets of companies like AIG to prevent a financial meltdown of many large financial companies. Briefly comment on the impact on the economy of this effort and explain what could have happened had this program (or something similar) not been implemented.
Jack and Mike harvest timber and sell it to local sawmills. Harvesting timber requires a special government permit. Jack and Mike have the only two permits and are therefore the only two producers of timber in this market. Harvested timber is a homog..
Hollywood screenwriters negotiate a new agreement with movie producers stipulating that they will receive 10% of the revenue from every video rental of a movie they authored. They have no such agreement for movies shown on on-demand television. When ..
What role did the government play in creating the financial crisis? What role did Fannie Mae and Freddie Mac play in the financial crisis? Could this have been prevented? How? How the government have responded to the crisis both in monetary policies ..
What are the potential ethical or moral effects of the organization’s social initiative or potential social initiative?
Using an aggregate supply/aggregate demand model chart the short run effects of decreasing government spending (assuming you began in a short run and long run equilibrium)
We’ve seen that monopolistically competitive firms will try to differentiate their products in order to eliminate substitutes. Are there comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of ..
To increase tax revenue, the US government in 1932 imposed a two-cent tax on checks written on deposits in bank accounts (In today’s dollars, this tax was about 25 cents per checks) Use the model of the money supply under fractional-reserve banking t..
If an asset costs $15,000 and after 3 years the salvage value is $2,000, what is the book value at the end of year 2 using SOYD? What does MACRS stand for? A new motorcycle costs $4,000 and has a lifespan of 10 years. The salvage value is $500. Using..
Select a developing country that interests you and search for evidence suggesting which factors are the binding constraint on growth. (For inspiration, see the sources in Box 4.3). In your paper, identify the country you are using and list several fa..
Assume the government has removed all barriers to entry in an industry where the existing firms are making an economic profit? explain with the use of demand and supply diagram, the impact of the government measures on the profit of firms in the indu..
suppose you are the owner-operator of a gas station in a small town. over the past 20 years you and your rival have
What is meant by culture of compliance. Is the concept applied consistently? In which countries or contexts does this arise? Is it likely to continue to be a factor in regulatory or ethical decisions? What can one do within an organization to foster ..
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