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In the eclectic economy of Ecentricitia, their currency is the Ecentric dollar (ED). 0.05 of each ED earned by Ecentricites goes to taxes. 0.09 of each ED earned is spent on imports. After taxes, they save 0.15 of each ED. Use this information to answer the following questions.
A. What is the Government spending multiplier in Ecentricitia?
B. What would be the original increase in expenditures if the government wanted to increase total aggregate expenditures (AE) by 100?
The two goods are money and ice cream and eating more than a certain amount of ice cream makes the consumer sick. If you assume that the consumer can dispose of unwanted ice cream at no cost how do the indifference curves change?
To what degree does real GDP measure to health of an economy? How is it possible to make valid international comparisons of real GDP? Support your answer with examples.
Grandpa would like to deposit some money now for his grandson to have available to beginning withdrawing $25,000 per year for four years, starting 5 year from now. If the money earns 6% interest per year, the amount that Grandpa must deposit is close..
Explicate your rationale. Once more, with the similar organization in mind, converse the most effective way to maintain also extend a competitive benefit.
The 2012 Human development Report reported that the HDI of South Africa was 0.629 (and its rank was 121) and that of the peru was 0.741( and its rank was77) in 2012 South Africa's GNI per capital ? In US dollars) was 7610 and that of Peru was 6060. C..
Calculate the present worth of a 4.5%, $5,000 bond with interest paid semiannually. The bond matures in 10 years, and the investor wants to make 8% per year compounded quarterly on the investment.
What is the inflation year over this year? What nominal or money interest rate would the investor receive?
An increase in the supply of a product can be shown graphically as a rightward shift of the supply curve. The graph will clearly show that we would expect the equilibrium price to fall and the equilibrium quantity to increase. Use a general solution ..
Volkswagen company is Germany own company with a massive factory in Mexico. In 2013, the Volkswagen Mexican factory produced $228 worth of cars and sold $6 to the U.S., $51 to Mexico, and $10 to Germany. How much was added to Germany’s GDP?
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2,000 every year forever? Assume the 8% per year is a return that you can depend on forever.
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the inco..
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