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Question: In the 1970s, a big increase in the Federal budget deficit was not offset by higher interest rates, so the rate of inflation tripled. In the 1980s, a big increase in the deficit was offset by higher interest rates, so inflation declined. Suppose that Congress votes a $200 billion a year increase in medical care benefits without any corresponding increase in taxes. Explain how you would change your business strategy if you were a company executive in the following industries:
(A) Manufacturer of railroad cars.
(B) Hardware store retailer.
(C) Stockbroker.
(D) Furniture manufacturer.
(E) Pension fund manager.
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As an overall measure of the difference between MH and CRH, one can consider the quantity 0.5(m1 - m2) + 0.5(m3 - m4). Construct a 95% confidence interval for this quantity. (This is a sex-adjusted comparison of MH and CRH, where the reference pop..
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Firms in the market for soccer balls are selling in a purely competitive market. A firm in the soccer ball market has an output of 5,000 balls, which it sells for $10 each. At the output level of 5,000 the average variable cost is $6.00, the average ..
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Foreign filmmakers could also receive funding-as long as it met Dutch content requirements. More contentiously, artists would have to prove.
At Lumberjacks R Us logging company, the demand for field workers is L = 2000 -100W, and the supply of labor is given by L = -600 + 50W, where L is the number of employees and W is the wage. For warehouse workers, the demand is the same, but the s..
What condition would create less worry about the Social Security system?
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