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How do these 4 concepts help to explain the law of demand (not explaining what they are but how the are related to law of demand):
1. Income effect
2. Substitution effect
3. Law of diminishing marginal utility
4. Utility-maximizing rule
a explain why a higher marginal tax rate reduces the size of the government expenditure multiplier.b suppose government
Illustrate what would you expect to happen in the general economy if these rates are all increased.
Draw a supply/demand diagram to model the US stock market (use the value of a stock price index such as the S&P 500 to represent the overall level of stock prices.
1. Explain why the real exchange rate never changes under the theory of purchasing power parity? 2. What governs the behavior of nominal exchange rates under PPP?
Using indifference curve analysis, explain and show graphically the effects of higher gasoline prices on:
Draw a graph illustrating this market and in your graph identify the equilibrium price, equilibrium quantity, all intercepts, the area that is CS and the area that is PS.
What sort of shift in supply or demand would result in a market equilibrium with higher prices but lower sales volume? A shift inward in supply could lead to an equilibrium with higher prices but lower volumes. What might cause such a shift?
Based to the News, how much more did the average household spend on appliances, electronics, and furniture when it received the 2008 tax rebate?
What is a store of value? What types of assets act as a store of value?
What are the uses of money? How do commercial banks and Federal banks create money? Is monetary policy conducted independently in the United States?
All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.
What should be the role of the tax of accountant in the organization decision making process.
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