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Consumption spending fluctuates much less than income fluctuates. This has been variously attributed to (i) government policy related to automatic stabilizers, and (ii) life-cycle models of consumption spending.
Describe how both (i) and (ii) can explain why consumption spending is less volatile than income.
If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will not change.
If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?
The Capital Asset Pricing Model is used to value equity securities. If the calculated CAPM price deviates from the price a stock is currently trading for, this implies there is an opportunity to profit by either buying the stock or selling it short. ..
Sue, of Sue's Sandwiches, sells sandwiches and soda from a sidewalk cart in a popular park near her home. She sets up her rented cart in the summers to raise money for college. Last month she sold $3,000 worth of product (sandwiches and sodas) to 300..
Assume only two countries, China and the US. If China decides to stimulate growth through a policy of running a large export trade surplus, does China’s national saving increase? Show the relationship between China’s national savings, domestic invest..
If the size of the US labor force is 154,000,000 and 85 million adults are not working, what is the unemployment rate and how do you calculate it?
What is the externality associated with an individual driving on a congested highway? How do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
q.postcard bangalore. hearts set on joining economy globally as indian it workers are brushing up on their
Critically examine the Ordinal Theory of Consumer Behavior? How a Consumer attains maximum level of satisfaction under this Ordinal Approach?
It is not possible to maximize profits by using a markup pricing strategy. To maximize profit, a firm should apply a uniform markup to each product it sells. Using markup pricing is more complicated than simply setting price equal to marginal cost.
Sony's e-reader and Amazon's kindle what is the competitor analysis that they should follow. What and Where did sonny's e-reader lack in their marketing
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