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Q. 1. a. Differentiate between monetary policy instruments and monetary policy toolsb. Describe the two key tools of monetary policy, and describe how they would be used by the Bank of Canada to implement a contraction monetary policy.
2. The economy of Kenya is in downturn as well as the recessionary gap is large. The World Bank hires you as its economist and asks you to.
a. describe the discretionary and automatic fiscal policy actions that might occur.
b. describe a discretionary fiscal stimulation package that could be used that would not bring a budget deficit.
c. describe the risks of discretionary fiscal policy in this situation.
d. explain the argument that lower corporate tax rates can increase tax income in Kenya. Reflect on the Laffer curve in your explanation.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
How much Wyandotte have to decrease the price of polyol to attain a 15% increase in the quantity sold.
Social responsibility other than to make as much money for their stockholders as possible. Explain why you agree or disagree with such a statement.
Two firms are located on the line and sell identical products. Consumers obtain K utility from consuming a product; assume that K is large enough that all consumers purchase from at least one of the firms despite the costs of transportation.
Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetration price, with supportive reasoning for and against each pricing alternative.
They value campaign funding in terms of dollars spent. Therefore, after spending ci on a campaign.
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15.
A local community voting to raise property taxes to increase school expenditures
Then do similar for every of the determinants of supply in Equation 2.2. In every instance, would equilibrium market price increase or decrease.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
James earned $10,000 in income in his new job in Nova Scotia after the move and his employer paid him $1,000 specifically to cover the cost of the move, but doesn't specify what it can be used for.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
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