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An increase in the personal income tax on interest income will:
A) Decrease desired saving because the expected after-tax real interest rate falls
B) Increase desired saving because the expected after-tax real interest rate rises
C) Decrease desired saving because the expected after-tax real interest rate rises
D) Increase desired saving because the expected after-tax real interest rate falls
How did Samsung’s unveiling of the galaxy S5 affect the demand for the S4? What determinant(s) of demand changed? How did Wal-Mart’s price cut compensate?
Consider the following game. You roll a six – sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loanable ..
You make an investment of $12,000 in an account with an APR of 6% compounded monthly. (A) What is the balance in this account after 8 years? (B) If, after this initial 8 year period, you wish to make equal withdrawals at the end of each year for 5 ye..
A university spent $1.8 million to install solar panels atop a parking garage. These panels will have a capacity of 500kw, have a life expectancy of 20 years and suppose the discount rate is 10%. a. If electricity can be purchased for costs of $0.10 ..
Market demand is given by P = 140 -Q. There are two firms, each with unit costs = $20. Firms can choose any quantity. Find the Cournot equilibrium and compare it to the monopoly outcome and to the perfectly competitive outcome. Why aren't the latter ..
Read the paper “The Great Depression, the New Deal and the Current Crisis” and answer the following questions: What were the similarities and difference in the economic context that preceded the Great Recession, as compared to the reasons that preced..
Characterize labor conditions in the new economy. Address the following: What working conditions do most people have? Who controls labor conditions?
The new requirements that (most) firms provide health insurance to workers can be thought of as increasing the costs of labor. What kinds of industries will be more likely to respond with large decreases in employment in response to these rules? How ..
For Canada, the expenditure effect generated by the U.S. tax cut and the spillover effects of increased defence spending will push the Canadian economy further into an economic recovery.” a) How will the U.S. tax cut and the increased U.S. defence sp..
Explain why the total profit (from all sales) is still likely to lower with this pricing scheme than with perfect price descrimination despite fixed fee equal to the entire consumer surplus of a typical customer.
An old wooden bridge over a bay is in danger of collapse. The highway department is considering two alternatives to alleviate the situation and provide for expected increases in future traffic. One plan is a conventional steel bridge, and the other i..
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