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A one billion dollar increase in government purchases will have a greater effect (multiplier is greater) on GDP than a one billion dollar decrease in taxes because:
tax cuts increase the deficit; an increase in government purchases does not.
households generally maintain their level of saving even though taxes rise.
a tax cut is not all spent; instead part is saved.
Circular flow diagram: Include the government sector in your explanation, a description of the roles that each participant plays in the economy, and how the different sectors interact in the markets.
Cartel agreements tend to break down: Dominant price leadership tends to break down:
Monetary policy tools used by the Federal Reserve (Fed) today do NOT include
Complete the following table by indicating whether each variable will rise, fall, or remain unchanged (NC) in the long run following an increase in national saving S. You don’t need to draw any graphs or give any explanations, but feel free to use th..
Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.
Milk is a commodity is it a necessity or a luxury product. Evalute the availability of its substitutes for the product. Explain how the necessity of a good and the availability of substitutes impact the elsticity of the product.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
Running a bank, the current reserve ratio mandates holding reserves equal to 20 percent of deposits. If someone deposits $100,000, by how much will the money supply in the economy increase?
Bankruptcy: Moral Amoral or Immoral? Is it unethical to avoid paying one’s debts by going into bankruptcy? Does a person have a moral responsibility to pay his or her debts? Why? Explain your answer
A restrictive monetary policy, all else equal, will: Stating the dollar has strengthened against the yen means the dollar has depreciated.
Identify the subject and theme of Managing for Stakeholders. Explain what you believe is the basic argument. What were some of the main points? What is odds with our society the way it is currently constructed? What specifically would change on socie..
Suppose that $2100 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. Determine the accumulated savings in this account at the end of year 26
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