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Tax Policy, You, and Your Family
Households and firms makes decisions about how much to consume and invest based on expectations about the future. How does government tax policy affect the decisions of households and firms from a general perspective? From your personal perspective? Briefly explain each answer
How many years would it take for an investment in year 1 with increases of 10%/yr to have a present worth f $1 million at an interest rate of 7%/yr?
Modigliani and Miller (MM) on the one hand and Gordon and Lintner (GL) on the other hand have expressed strong views regarding the effect of dividend policy on a firm’s cost of capital and value. In essence, what are MM’s and GL’s views regarding the..
Suppose that an increase in crime (O) also results in a per unit amount of social damage equal to d(d>0).
A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)
Explain how can tax cuts help revive the economy include discretionary fiscal policy, expansionary fiscal policy, tax multiplier, Aggregate Demand-some-not all--of these and/or other terms from this week.
A manufacturing company purchased electrical services for the next 5 years to be paid for with $70,000 now. The service after 5 years will be $15,000 per year beginning with the sixth year. After 2 years service the company, having surplus profits, r..
Assume that trade opens between Argentina and New Zealand and that, with trade, a pound of mutton exchanges for a bushel of wheat. Before trade, Argentina produced at point A and New Zealand produced at point C. Argentina moves to point B, while New ..
Assume that an investment is forcasted to produce the following returns: a 20% probability of a $1200 return; 50% probabilty of a $5600 return and 30% probabilty of $9500 return. What is the expected amount of return this investment will produce?
The craft unions electricians, carpenters, other possess considerable power to raise wages than do industrial unions automotive workers, steel workers.
Due to limited borrowing options, the government may ask the central bank to print money. We also learned that the real seinorage revenue of the government depends on inflation and real money holding of the public, that is R= \prodM/P?. Explain the c..
Behavioral economics clearly makes an important contribution to our understanding of economies. Which, after all, are driven by human behavior?
What is your assessment of business's response to product and service quality and safety? Have they done enough? What is missing from their approaches?
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