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Which of the following must be true in an economy with a government but with no foreign trade?
A. Household saving will be equal to investment.
B. The sum of consumption and saving will be equal to the sum of income and taxes.
C. The sum of household income and business profits must be equal to the sum of consumption, government spending, and investment.
D. An increase in the government deficit will force an increase in investment.
E. If the government has a balanced budget, household consumption will equal the difference between income and saving.
You just purchase a coupon bond with a face value of $1000, 6% coupons, and three years remaining to maturity. Assume that all markets are 7% A) what is the duration of this bond B) Compute the exact price change(using the present value formula) if i..
Looking to generate some additional income from the restaurant building you own, you explore the idea of installing maintenance-free solar panels on the rooftop. If you find a company who will install the solar panels (material and labor) for $54,000..
At the beginning of your answer be sure to explain what a price floor is, explain why the government might impose a floor, and who it is intended to benefit.
The capitalized cost of of an initial investment of $200,000 and annual investments of $30,000 forever at an interest rate of 10 % is closest to....Please show work
At present, the original manufacturer is deciding either they should continue production of toy truck.
Find out the curve for MR and use it to find the monopoly output and price. Calculate the output of a perfectly competitive market if the MC is the same as the market supply.
Are there circumstances in which it might be possible that deficits could increase productivity and long-run growth?
q. without trade the united states produces 45000 units of clothing and 150000 cans of soda. without trade brazil
Corporate bonds are often purchased as a conservative investment strategy. What is the difference between a Coupon Bond and a Zero Interest bond? Identify at least three (3) possible effects of an increase in the money supply on interest rates
What would this event cause the demand for the dollar to increase or decrease relative to the demand for the pound.
Suppose you purchase a 30-year, zero-coupon bond with a yeild to maturity of 6%. You hold the bond for five years before selling it. If the bond's yield to maturity is 6% when you sell it, what is the internal rate of return on your invesment? If the..
If you were to be a retailer, would you want to sell elastic or inelastic goods? State your reasons in your answer.
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