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Question: Explain which of these changes represent a move along the IS curve, and which represent a shift of the IS curve.
(A) Stock market boom boosts consumption and investment.
(B) Government cuts taxes by $50 billion.
(C) Government passes $50 billion public works bill and pays for it with a $50 billion tax increase.
(D) Fed boosts interest rate from 5% to 6%.
(E) Tax receipts fall $30 billion as economy plunges into recession.
(F) Value of the dollar rises 10%, cutting net exports by $40 billion.
(G) Net exports rise $20 billion as Asian economy recovers.
(H) Rise in interest rates diminishes housing starts. (I) Mortgage interest is no longer deductible, so housing starts decline.
Assume that after 3 years the company will sell the selected analyzer. Using the same total tax criterion, does either analyzer have an advantage? The selling prices are expected to be $130,000 for analyzer 1 and $225,000 for analyzer 2.
Identify and analyse the key sensitivity factors affecting this project. Explain using the accelerator principle why the demand for aircraft is so volatile.
a. From this information, derive Bert's demand schedule. Graph his demand curve for bottled water.
The Wall Street Journal once reported on dating services, noting that the fees were $300 for men and $250 for women. The owner of the service said the difference in fees was to compensate for inequalities in pay scales for men and women
Discuss the importance of inventory control with respect to supply and demand. What benefit can tools such as ABC analysis and just-in-time controls provide for an organization?
Monopoly, special case. A monopoly drug company produces a life-saving medicine at a constant cost of $10 per dose. There are 100 patients who need to take.
According to a Honda press release on October 23, 2006, sales of the fuel-efficient four-cylinder Honda Civic rose by 7.1% from 2005 to 2006. Over the same period, according to data from the U.S
1)How does a high rate of inflation affect money in all its different roles?
john operates a small business out of his home and has very little in terms of fixed costs. answer the next questions
What are the key points in Marx's analysis of capitalism? Why did Marx's prediction of a proletariat revolution not materialize? How does Fair Trade differ from Free Trade - what are its advantages and disadvantages?
Suppose that low-fat milk and cream are complements in production. A decrease in the price of cream will result in _________
Understanding Cause and Effect What will happen to the price you pay for concert tickets if a popular group has to move its show to a smaller facility?
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