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Assume there is an increase in government spending of $30 million and a decrease in tax revenue by $45 million. Carefully answer the following and demonstrate your answers using a diagram.
What effect will this have on the demand and supply of loanable funds? How will this affect the real interest rate and the quantity of investment?
Is the equilibrium change the same, more, or less than the initial movement of the curve you identified in part a.? Carefully explain why, using your diagram.
How will your answer in part a. change if the decrease in tax revenue was $15 million instead of $45 million? Carefully explain using a diagram (you can use the same one as before but need to clearly indicate the change related to this part and describe it in words).
Suppose that a tariff is imposed on imports of minivans. Show graphically what the effect is in terms of price and quantity of imports. Be sure that your graph is completely and correctly labeled. What determines how much of the tariff is paid by the..
Suppose there is an increase in the monthly fire insurance premium that department stores have to pay. Assume that department stores are a competitive industry. In the short-run, will the prices of goods sold at department stores increase or remain u..
(a) What will be the combined output of the two firms? (b) What will be the profit earned by each firm?
Assume Fed expands money supply, however because public expect this Fed action, it simultaneously raises its expectation of cost level. Illustrate what will happen to output and cost level in short run.
The following events happens in order: 1. Fed bought $100M in bonds from Bank A 2. Bank A then use $40M to buy bonds from bank B, and lend out $60M to a person A 3. Bank B holds everything as excess reserves. Person A withdraw $5M. Calculate the chan..
the cost of pollution in billions of dollars originating in the paper industry iscp 2p p2where p is the quantity of
Why might some argue that news stations ought to stick to reporting what is actually happening on Election Day rather than making projections? Projection may cause a bandwagon effect. Projections based on push-polls may be inaccurate.
Evaluate the decision to shift advertising money from ESPN.com to Google AdWords
Listed in descending order of numerical importance, the business population is comprised of: a) sole proprietorships, corporations, and partnerships b) sole proprietorships, partnerships and corporations c) partnerships, corporations, and sole propri..
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
Analysis of the balance of trade and the financial flows between domestic and foreign entities. Imports and exports vital to Viet Nam’s GDP will be examined.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
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