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Suppose the government decides to increase taxes by $20 billion to increase Social Security benefits by the same amount. How will this combined tax transfer policy affect aggregate demand at current prices?
The city of Bookburg initially allows only one book store, which sells books at a price of $20 and an average cost of $11. Suppose the city eliminates its restrictions on book stores, allowing additional stores to enter the market. According to an..
Do you think that the World Bank is orientating its action in a right way or not and if not, any ideas of how to redefine its action.
Advances in telecommunications and information technology revolutionize the way Ms. Aura does business. She begins to use the Internet to nd all relevant information about clients and meets many clients through teleconferencing. The new technol..
Suppose that in Question 1, the government rather than using a tariff, decides to limit the quantity of imports to 4. All the quota licenses are given to the nephew of the minister of finance (no rent seeking). Show on a new graph the outcome of t..
Prove that a diminishing marginal rate of substitution either implies nor is implied by diminishing marginal utility.
The Law of Demand states that the demand for a product is inversely related to the price of such product. Therefore, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is th..
A United State corporation CTM borrows $1,500,000 at LIBOR + 125bp p.a. on a 6M rollover basis from a London bank. If 6M LIBOR is 4 1/2%
Illustrtae what were the challenges that these policy makers perceived at the time in terms of both the Business Cycle and broader social policy.
Jim previously earned $70,000 per year, but he now pays himself $25,000 per year while he is building the new business. what is the economic cost of the time he contributes to the new business.
Illustrate the process of bringing a new international bond issue to market. What should a borrower consider before issuing dual-currency bonds. What should an investor consider before investing in dual-currency bonds.
When the price of a box of herbal tea bags rises from $0.99 to $1.21, the quantity offered for sale rises from 400,000 to 600,000. What is the price elasticity of supply? 2. When the price of wheat rises from $2.34 to $2.46, some farmers switch cr..
In a closed economy without a government sector, consumption is determined as 80% of the income available to households. Investment is autonomous at a level of £450.
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