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Assume that the gross national debt initially is equal to $3 trillion and the federal government then runs a deficit of $300 billion.
i. Illustrate what is the new level of gross national debt?
ii. If 100 percent of the deficit is financed by the sale of securities to federal agencies, what happens to the amount of debt held by the public? What happens to the level of gross debt?
iii. If GDP increased by 5 percent In the same year that the deficit is run, what happens to the GDP? What happens to the level of debt held by the public as a percentage of GDP?
Elucidate the drastic change also Illustrate what this meant for the U.S. population.
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Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
Consider what you have learned about the root causes, as identified by leading economic thinkers and policymakers.
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The following sets of statements contain common errors. Elucidate and identify each error.
Which of the subsiquent statements is (are) generally true assuming a mound shaped distribution.
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