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Analyze the effects of each of the following on national saving, investment, and the real interest rate. Explain your reasoning and illustrate it with an appropriate diagram.
(a) Consumer confidence falls, so consumers decide to consume less and save more at every level of the real interest rate.
(b) The government announces a larger, one-time bones payment to veterans returning from a war. The bonus will be financed by additional taxes levied on the general population over the next five years.
(c) The government introduces an investment tax credit (offset by other types of taxes, so total tax collections remain unchanged)
(d) A new technology breakthrough increases the future marginal product of capital and expected future income.
The demand and supply curves for T-shirts in LA, Ca, are given through the following equations, Determine the equilibrium price and quantity after the shift of the demand curve.
joe smith is a 27- year-old caucasian male who works two part-time jobs for two different construction companies. joe
Many colleges sell special cards that students can use to purchase everything from textbooks or meals in the cafeteria to use of washing machines in the dorm. Students deposit money in their cards; as they use their cards for purchases.
How would the US production possibilities curve be affected in this case: the AIDS epidemic becomes rampant in America claiming millions of lives.
A change in the price of good causes a movement along the same demand curve whereas a change in any other determinant of demand causes a shift in the demand curve. Discuss the factors that would affect the demand for higher education (increase or to ..
17. assume a certain firm in a competitive market is producing q 1000 units of output. at q 1000 the firms marginal
rent-seeking behavior results inaincreased economic activity by promoting efficiencyblower economic acitivity by
scans of internal organs using magnetic resonance imaging mri. these devices are often covered by subsidized health
oligopolies have a negative impact on income distribution. do you agree or disagree? provide justification for our
1. delores has a different price consumption curve associated with each possible income level. if two of these curves
you are the manager of a monopolistically competitive firm and your demand and cost functions are given by q 36 - 4p
It has often been said that craft unions (electricians, carpenters, etc.) possess considerably greater power to raise wages than do industrial unions (automobile workers, steel workers, etc.) How would you explain this phenomenon in terms of deman..
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