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Describe using a plus for an increase (+), a minus for a decrease (-), and an equal sign for remains the same (=) how each of the following events will affect the consumption function, savings function and investment function. (Use a table like the one given below to display your answer.)
Events:
a. A large increase in the value of real estate, including private houses.
b. A decline in the real interest rate.
c. A sharp, sustained decline in stock prices.
d. An increase in the rate of population growth.
e. The development of a cheaper method of manufacturing computer chips.
f. A sizable increase in the retirement age for collecting Social Security benefits.
A landlord requires tenants to pay at the beginning of their lease an amount equal to 3 months of rent. He informs the tenants that this is for the first month's rent, the last month's rent, and a refundable security deposit equal to one month's rent..
Do corporate managers always act in the best interest of shareholders Explain. Research and present one CEO (Chief Executive Officer) pay package. Does this CEO earn more money if the company performs well? What penalty does the CEO receive.
Suppose the price of housing increases to 3, but the price of food stays at 10. Rewrite Jane's budget constraint and draw it on a graph. Now suppose the price of housing decreases to 1. Rewrite her budget constraint again.
Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power.
Some nations have very different economies. In the absence of market-set prices, how are prices determined for household goods.
What is te equilibrium? At what price is there neither a shortage nor a surplus? fill in the surplus-shortage column and use it to confirm your answers.
Past month Jones Hat Corporation sold 100 hats at $10 each. This month it increased the value of hats to $11 and sold 101 hats.
As an employee of the World Bank, you have been asked to research 1 economic concern in an Asian country and write a report on your findings.
Explain how each of the following will affect the relative values of the dollar and the euro:
How has this revolution changed the economy of the nation? How has it impacted jobs? What does this mean for the US of today in terms of international relationships and responsibilities?
Suppose that Congress enacts a lump-sum tax cut of $750 billion. The marginal propensity to consume is equal to .075. Assuming that Ricardian equivalence holds true, what is the effect on equilibrium real GDP On saving
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
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