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Assume that, government of Country X, which had a balanced budged now increased their spending while the taxes are constant.
GDP = 1,000 million BDT G = 100 million BDT C = 850 million BDT
X = 100 million BDT T = 50 million BDT M = 125 million BDT
A) What is the level of investment spending and private savings?
B) What are amounts of budget balance (deficit/surplus) and net capital inflow? [Hint: net capital inflow equals the value of imports (M) minus the value of exports (X)]
Banks are holding nearly $2.5 trillion in excess reserves. Explain why increased business uncertainty about future sales coupled with asymmetric information could explain why bankers are holding their reserves rather than lending them.
Consider a monopolist facing a demand curve given by P = 20 – q, where P is the market price and q is the quantity sold. The monopolist's marginal costs are MC = 2 per unit; there are no other costs.
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Restaurant chain Johnny Rockets, known for its burgers, uses about eight million pounds of ground beef a year, and its prices have risen over the last two month
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Discuss the arguments for and against globalization regarding culture, economics and the environment. Describe countries that benefit most/least. What is your opinion regarding globalization?
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