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Autonomous aggregate expenditures decreases by $300 million, the marginal propensity to consume is 0.60, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.15. Calculate the change in income. Show your work.
Utilizing a graph of equilibrium in the housing market, describe carefully which parties win and which parties lose from rent control.
Suppose that you have had a one-hundred dollar bill hidden inside your mattress for the past year. Suppose also that at the beginning of the year, you could have instead used the hundred dollars to purchase a bond that would have given you a real ret..
Will these monopolies typically earn economic profits. Why do not other airlines enter these monopoly routes.
There is an asset demand for money because households and business firms use money as a store of value. What are some other reasons that households and business firms hold money?
64.q1. in relation to itunes music store further variable pricing elucidate what are some other potential pricing
Explain the effects of each of each of the following factors on the economy’s price level and real GDP. Illustrate your explanations with appropriate diagrams.
Imagine you have $20000 and you are willing to invest. A safe investment that promises to pay 5% profit after 1 year. A risky investment that has a 20% chance you might loose half of your money. How much do you expect to get paid for a year in the s..
q1. why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?
A competitive firm that is profit maximizing pays a wage. The firm has started marketing its new product.
Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for t..
q1. ibm should never sell its product for less than it expenses to produce. if costs to produce is interpreted to mean
If the government raises your marginal income tax rates and uses the money in a way that does not affect you in any way.
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