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In each of the cases below, determine whether the IS curve shifts to the right or left, does not shift, or is indeterminate in the direction of shift. Make graphs where necessary.
a. The real interest rate rises.
b. The marginal propensity to consume declines.
c. Financial frictions increase.
d. Autonomous consumption decreases.
e. Both taxes and government spending decrease by the same amount.
f. The sensitivity of net exports to changes in the real interest rate decreases.
g. The government provides tax incentives for research and development programs for firms.
Now assume that the economy is open and that the world interest rate is determined on the world market instead of in the domestic economy. Use a two-country model with initial current accounts equal to zero. How does an increase in domestic wealth af..
The nation of Leisureland can produce two goods, bicycles and bowling balls. The western region of Leisureland can, if it devotes all its resources to bicycle production, produce 100 bicycles per month. What is the opportunity cost of producing an ad..
The marginal product curve of input Y shows. Which of the following is true of a production function?
Illustrate what were you thinking about the economy in 2005 and did you ever foresee a crisis of this magnitude. What policies could you have suggested to avoid the impending economic crisis.
Identify at least two professional organizations in a chosen field. Research the organizations to identify the following:
Provide Energy from Fusion and fusion reaction- Why it is a challenge? Why benefits will be gained by solving the challenge? What has been done so far to solve the challenge? How IEs may contribute to solving the challenge?
The function that takes as input a string and returns a list of the index positions of all the vowels in the word. A vowel is defined as any letter in "aeiouAE
Consider an investor who, on January 1, 2016, purchases a TIPS bond with an original principal of $100,000, an 8 percent annual (or 4 percent semiannual) coupon rate, and 10 years to maturity. From your answer to part a, calculate the inflation-adjus..
Based on variance, which of the three strategies would you definitely advise against? Provide specific (numeric) details to support your answer.
Identify a recent merger/acquisition and use it to and answer the question: was the merger/acquisition predominately about gaining economies of scale
Cartels with a small number of industries have a greater probability of reaching the monopoly outcome than do cartels with a larger number of industries.
Periodic outlays for inventory control software at Baron Chemicals are expected to be $280,000 immediately, $280,000 in 1 year, and $200,000 in 2 years. What is the present worth of the costs at an interest rate of 3.92% per year, compounded continuo..
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