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1. What are the ways or reasons under which ?scal de?cits can crowd out private expenditures in the determination of aggregate demand? In this discussion, do not forget the Ricardian equivalence theorem.
2. In the IS-LM model, discuss how each of the following affect the relative ef?cacy of monetary and ?scal policies:
(a) the interest elasticity of money demand;(b) the interest elasticity of investment;(c) the income elasticity of money demand.
3. "It makes no difference whether government expenditures are ?nanced by taxes or bonds." Specify a theoretical basis for this statement. Provide at least two reasons why it may not hold.
Do you agree that the only way to raise equilibrium quantity is to raise supply and demand together? Why agree or why not agree?
For Karr Company, the predetermined overhead rate is 140% of direct labor cost. During the month, Karr incurred $90,000 of factory labor costs, of which $80,000 is direct labor and $10,000 is indirect labor. Actual overhead incurred was $119,000.
the fully allocated cost of a product is $10. If the price elasticity of demand for the product is -2, then the firms optimal markup is: 10%, 100%, 200%or 300%.
Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. What is the breakeven level of daily output for the firm?
consider the cobb douglass utility function ux y x16y56 of a typical student. x denotes time spent studying and y
How well do punches of market satisfy properties of ideal money (durable, portable, divisible, uniform quantity, low opportunity cost, stable value)?
Suppose the EEOC uses a job-scoring system and determines that the wage rate for a secretary is $50 per hour, while the competitive labor market wage rate is $10 per hour. What would be the effect of such a comparable worth law
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Whate are the advantages and disadvantages of common transfer pricing methods ? please explains with updated example.
Describe the following phenomenon from a perspective of methodological individualism and social science. Americans drink coffee; the British drink tea.
Provide two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
The same rightward shift of the demand curve may produce a very small or a very large increase in quantity, depending on the slope of the supply curve. Explain this conclusion with diagrams.
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