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Assume a market for loan-able funds with the following values: Y* = 1000, C = 400, G = 200, T = 50 and I = 400. In this economy
Group of answer choices
1. The current fund market is in equilibrim.
2. The real interest rate is lower than equilibrium rate.
3. We cannot determine whether the market is in equilibirum or not with the given information.
4. The real interest rate is higher than equilibrium rate.
Why is investment significant to economic growth? Please explain. What benefits does economic growth of economy provide to the average individual living in the economy? How can the government encourage economic growth via corporate taxes and other me..
Mr. Ess, the owner of the SS Skimpy and an American citizen, borrows money from MultiBank in London to outfit his ship, giving the bank a maritime lien. Mr. Ess sells the Skimpy to Mr. Tee, a Canadian. Mr. Tee is unaware of the lien and unaware that ..
Describe the four determinants of Productivity? How does the rate of population growth influences the level of GDP per person?
CASE STUDY SCENARIO Allan’ s Fast Store is the only fast food in Duke Town and the factory workers purchase lunch there every day. Mr. Allan, the owner, had lowered the price, which caused an increase in demand. The relationship between TR and price ..
What is the probability of a student scoring more than 30.8 is and round to four decimal places?
Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.
A business with technology can be described by the production function y = 4z1^1/2 + 2z2^1/2 . Assume that input 2 is fixed in the short run: z2 = 9. Also assume that the firm faces output price p = 6 and input prices w1 = 2 and w2 = 6. Solve for th..
a. Define "specification bias". Describe why it is considered to be a "fatal" error when estimating an econometric model.
There is a 75.17% chance that we would find a pumpkin that weighs more than what?
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