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Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loanable funds market and show graphically what happens to the equilibrium interest rate and investment as a result of this balanced-budget change.
Calculate the loss of economic welfare caused by the monopolistic . If some of this lost welfare would have been producer surplus, why is the monopolist willing to forgot this surplus?
Show how the transaction would have been recorded in the German balance of payments accounts. What was the net effect on the German balance of payments.
Suppose the real interest rate is 3%, the real growth rate is 2%, the money multiplier is 4, banking innovations are decreasing the demand for money by 1% per year and the money supply is growing at 10% per year. What should be the price of a T-bill ..
Perfect Competition - Draw supply and demand graphs and show how the following situations would shift supply or demand. Does Price (P) and Quantity demanded (Q) rise or fall? The Affordable Care Act increases the number of individuals with health ins..
Suppose government purchases amount is $3.5 trillion, transfer payments amount is $0.5 trillion, net interest payments are $0.25 trillion and tax revenue is valued at $2 trillion. Calculate the amount of the government deficit; Calculate the primary ..
can increase the natural rate of unemployment. Is this something that policymakers should be concerned with? Explain.
Compute the unweighted-average nominal tariff rate for Tarheelia nominal tariff rate for Tarheelia.
Assume that you are 10 years into a 30 year home loan at 5%. You owe $200,000 left on your home at this time. You can refinance your loan at 4% for 20 years; however the TOTAL closing costs will be around $3,000. If you go for refinancing, how many m..
For each of the following, use an ADIIA graph to show the short-run effects on output and inflation. Assume the economy starts in long-run equilibrium.
Explain how do acts of intellectual piracy hurt American companies.
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
Suppose that your parents are deciding where to hide your (insert non-offensive, not religiously affiliated holiday here) presents while you’re trying to decide where to look for them. The payoff to your parents from successfully hiding your presents..
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