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Assume that a hypothetical economy with an MPC of 0.9 is experiencing severe recession.
Instructions: In part a, round your answers to 2 decimal places. Enter positive numbers. In part b, enter your answers as whole numbers.
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?
How large a tax cut would be needed to achieve the same increase in aggregate demand?
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase spending by _____
Increase taxes by _______
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective?
How has the tightening of consumer credited effected individual spending and in turn the U.S. economy? Has this strategy by the financial institutions helped our economic recovery?
Include no more than six abbreviated bulleted items for each slide in approximately 24-point font. The title slide content should include the title of the assignment, your name, your professor's name, the course title, and the date.
q1. one proposal to slow the growth in consumption of fossil fuels is the imposition of higher taxes. how would that
Given the budget equation 5M + 10P = 100, where M represents movies and P represents pizza, the slope of the budget line is
Please select one item that you can see from where you are sitting right now – and list and describe as many people as you can think of that played a role in getting that item to where it is right now.
If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio.
The area-dependent cost of a solar energy system is $175/m2 and the area-independent cost is $3, 350. The down payment of the initial expenditure is 25% and the rest is paid in equal installments over 20 years at an interest rate of 7%.
Assuming that your interest rate, i, is equal to 14% annually, what would be your maximum offer (purchase price) on this machine?
Bob and Ray buy only two goods, ice cream and root beer. They both get their root beer at Root Beer City, where they pay $1 a bottle. Bob is indifferent between the baskets (1, 3) and (2, 2). Ray is indifferent between the baskets (2, 2) and (3, 1). ..
A broadband service company borrowed $2.4 million and repaid the loan in amounts of $200,000 in years 1 and 2 plus a lump sum amount of $3.168 million at the end of year 3. What was the interest rate on the loan?
Corporate executives are pressured between conflicting interests of internal and external stakeholders. Provide a specific example of such a conflict. How can the conflict best be resolved?
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