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In the context of a Keynesian open-economy income model for a country, carefully explain the impact of each of the following autonomous events upon equilibrium income in the country and upon the country’s current account balance:
(a) an increase in domestic investment;
(b) an increase in exports; and
(c) a simultaneous and equal autonomous increase in exports and imports.
Calculate the present value (PV) of profits for Abe's business at each of the following discount rates: 8%, 9%, 10%, and 12%.
A firm has the production function y = x1 + min{x1, x2}.
A sum of sufficient magnitude is to be invested now so that starting in 10 years from now an amount of $2500 per year can be paid in each of 8 succeeding years. The unexpended money remains invested at 6% compounded annually. How much must be allo..
The typical right wing/free market argument that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking capitalists, rather than being owned by the government..
Jordan Inc makes basketballs in Vietnam using labor (L) and capital (K). Its weekly production function can be described as: The price of each unit of capital is $40 per unit per week. The labor use varies according to the number of basketballs made,..
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
elucidate explain why the cost structure associated with many kinds of information goods also services might imply a
Explain the difference between import substitution and export promotion as economic growth strategies for developing countries. Be sure to include in your response both the strengths (benefits) and weaknesses (risks) inherent in both strategies. Whic..
Compare also contrast the yields also maturities for each of the securities. Argue elucidate which you would hold also Elucidate why relative to interest rate risk.
Show that each of these has a diminishing MRS but that they exhibit constant, increasing, and decreasing marginal utility, respectively. What do you conclude?
Suppose that two consumers care only about the goods that they own. (The goods are private for them.) Starting from a competitive equilibrium allocation, is it possible for both consumers to be made simultaneously better off by trading with each othe..
You have been hired to manage a small manufacturing facility whose cost and production data.
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