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Q1. When corporate income taxes are assumed to exist, Modigliani Miller and the traditional theorists agree that capital structure does affect value, so the basic point of dispute disappears. Do you agree? Why or why not?
Q2. Suppose that G increases by 100 to 600 and we assume, as we often do, that firms match the increase in demand by increasing Y by 100. In round two, this is an increase in income of 100 to consumers. Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes. Be sure to include the leakages, taxes, Savings and NX. Use the same conditions as stated above.
The law of demand states that other things equal
Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
If the market price of the product is 270, how much output should the firm produce in order to maximize profit. How much profit will this firm make.
Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
When would it make sense for a factory that is losing money to remain in operation
Find the equilibrium price and quantity after the shift of the demand curve.
Can you find a Nash equilibrium in pure strategies that is not efficient. In some legislatures, proposals for modifications of the law are formulated by committees.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Each firm can monitor the other's price very closely and can respond instantly
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
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