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Question
In an economy, the tax rate is 25% and the marginal propensity to spend is 85%.
A. Determine the value of the fiscal multiplier.
B. If the government increases its spending by $20 billion, by how much will the total income and spending increase?
Canada has a private market for the provision of health services, and until about 1970, spent the same % of GDP as the US on healthcare. Since that time, however, the rate of healthcare inflation in Canada is far lower than in the US. Does this mean ..
Illustrate what is the basic objective of monetary policy. What are the major strengths of monetary policy.
What is the confidence interval for the proportion of households represented at a town meeting. Survey of households in a small town showed that in 850 of 1,200 sampled households.
In dynamic game theory, a situation where a player is using non-credible threat is an examples of subgame perfect Nash equilibrium, explain why or why not?
Discuss the probability that the annual net cash flows will be negative. Determine the probability that the annual net cash flows will be less than $20,000.
The private and social marginal cost (MC) of producing squibs is MC = 2.5 + 0.0375Q, where Q is quantity of squibs in thousands of cases per month, and MC is measured in dollars per case. The market is competitive and firms would supply at marginal c..
1. What is the source of competition in monopolistic competition?
Is there a difference between the moral hazard and principal-agent problems? If yes, explain the dif- ferences and give an example of a situation where one of them exists without the other. If there is no difference, argue this is one and the same pr..
If the government increased taxes so that consumers had less money to spend, would this cause the spending multiplier to get larger, get smaller
List two unbiased estimators and their corresponding parameters. (Select all that apply.)
Suppose you have a fixed-rate mortgage with a nominal interest rate of 6% and the expected annual inflation rate over the life of the mortgage is 2%. What is the approximate expected real interest rate?
(a) Test at level of significance a = 0.05 whether the difference between the two average wearing lives is significant.
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