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Q1. If deficit spending crowds out some private investment, could future generations be worse off? If external financing eliminates crowding out, are future generations thereby protected?
Q2. Illustrate what is an opportunity cost? Elucidate how does the idea relate to the definition of economics? Which of the subsequent decisions would entail the greater opportunity cost? Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain
If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banking system will.
Assume you have a production technology to can be characterized by a learning curve.
In a few sentences, what effect does the current supply and current demand have on this product.
Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second Lawn is $12, and the cost of mowing the third lawn is $15.
Gary has two children, Kevin and Dora. Each one consumes "yummiest" and nothing else. Gary loves both children equally.
Explain how does this affect the supply of beef. Explain how does it affect the supply of beef worldwide.
A local community voting to raise property taxes to increase school expenditures
Show how each of the following would initially affect a bank's assets and liabilities.
Determine the impact on the economy if the central bank in U.S. used inflation targeting.
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Illustrate what is the GDP of George's also John's island in terms of clamshells?
Would you expect firms in a tight oligopoly market reap higher profits than firms in a loose oligopoly market.
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