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Suppose Finley spends $1,000 a year on food. The government now gives him $500 in food stamps. What do we know about Finlay's spending? Assume food is a normal good.
(Select each correct answer.)
1. The effect of the food stamps on Finley's cash expenditure must be the same as the effect of a hypothetical $500 gift in cash
2. The effect of the food stamps on Finley's cash expenditure must be the same as the effect of a hypothetical $500 voucher than can be spent only on non-food
3. Finlay might consume exactly $1,000 a year on food
4. Finlay might consume less than $1,000 a year on food
Macroeconomic models with demand-determined output are usually built on the assumption that goods (or labour) markets do not clear because prices (or wages) do not instantly adjust in response to various shocks. Explain intuitively why any individual..
q. suppose that the federal reserve lowers the required reserve ratio from 0.10 to 0.05. how does this affect the
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Is it true or false when something in the equity free cash flow model, if the value is for the net debt is negative, does this mean that in the period
The following calculator shows the supply curve for sedans in an imaginary market. For simplicity, assume that all sedans are identical and sell for the same price. Consider the previous graph. Suppose that the price of a sedan decreases from $ 26000..
Discuss the impact of a favorable supply shock (technological breakthroughs) on the equilibrium price level (P) and output level (Y). Also, discuss how the Fed could accommodate a favorable supply shock. Discuss in detail how the price level and outp..
Suppose two people make up the market for my old wrestling cards. The first has a demand curve given by the equation Q = 10 - P. The other has a demand curve given by Q = 20 - 2P. Graph each of these, then graph the market demand curve.
If you borrowed $24,000 today and you have to pay them back in five equal payments over 10 years (one payment every 2 years). With 8% interest rate compounded annually, what is the amount of each payment? (C=?)
Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer. Give your..
Draw a demand–supply graph and label the axes with the price and quantity of khaki pants. Next, for each scenario, draw the appropriate demand–supply curve. Compare the new demand curve or supply curve by drawing it on the same graph.
Suppose demand for a product is given by the equation Q D = 120 - 4P and supply for the product is given by the equation Q S= 4P
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