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With the economy in a recession because of inadequate aggregate demand, the government increases its purchases by $1,200. Suppose the central bank adjusts the money supply to hold the interest rate constant, investment spending is fixed, and the marginal propensity to consume is 2/3.How large is the increase in aggregate demand?
Why do recessions occur every 5-10 years?
Obtain the demand equation for natural gas and calculate the annual change in consumer surplus
Consider a city with a river. The city has a resort whose visitors use the river for recreational purposes. The city also has a tannery that creates industrial waste which it dumps into the river.
Many home mortgages in recent years have been made with variable interest rates. Typically, the interest rate is adjusted once a year based on the current rates on government bonds. How do variable interest rate loans protect creditors from the ef..
business behavior and public policy1. define market power and then discuss the rationale for government regulation of
Suppose that a gambler plays a $1 game 7 times. in each game, his probability of winning is 20 percent. if he wins, he gets $4 prize. he gets nothing if he loses. to profit on the games, he must win at least twice. what is his probability of winning ..
An increase in consumer incomes will lead to a rightward shift of the demand curve for plasma TVs and the price of automobiles were to increase substantially, the demand curve for gasoline would most likely
When the iPad was introduced, Apple’s, Apples constant marginal cost of producing this iPad was about $220. We estimate that Apple’s inverse demand function for the iPad was P= 770 – 11Q, where Q is millions of iPad purchased. What were its profit ma..
What is the price of money? Hint: interest rates. How are interest rates determined?
identify and describe in detail the four vital functions of money in detail. give real world examples of each of them.
Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely? What problems might it face in the future?
the government decides to embark upon a new initiative to conserve the countrys forested lands. congress doesnt want to
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