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Suppose a large open economy with perfect capital mobility has a real interest rate that equates national saving and desired investment that is above the world real interest rate. Now suppose that the country undertakes a significant fiscal contraction, reducing govt. purchases by $100 billion and increasing tax revenues by $100 billion through a higher effective corporate tax rate. Show the effects of this fiscal contraction on real interest rate, desired saving, desired investment, and the net export balance.
Utilizing a supply and demand diagram, explain how speculative attacks occur in the foreign exchange market.
As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
Earlier this year the increasing price of tortillas resulted in major protests in Mexico City combined with a warning from Mexican central bank that this may fuel rising inflation.
What is the level of price, output, and amount of profit for an unregulated monopolist? Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? ..
Economic forecasters predicted that consumption also GDP would increase because of higher refunds on income taxes.
Explain when assessing the effects of the budget surplus, list the assumptions you are making.
If a monopolist is creating a level of output at which demand is inelastic and the firm is not maximizing profits.
I need help with identifying 5-realistic and important factors that will contribute to a successful United State economic recovery over the next 5-years.
Explain how might federal deficits crowd out private domestic investment. How does this crowding out affect future living standards.
describe market trends that Proctor and Gamble will face. Elucidate your conclusions. address how each of the following will change or will not change, and why.
Explain how much will your industry's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
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