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If a R200 billion increases in investment spending creates R200 billion of new income in the first round of the multiplier process and R160 billion in the second round. Calculate: a. the marginal propensity to consume (MPC). b. the value of the expenditure multiplier in this closed economy.
Identify and explain in detail how changes to two factors on the supply side would impact the company's business operation. How would those two supply side factors affect the company's ability to supply food to its customers?
Suppose there are 100 people betting on each team and the Patriots win by 14 points. Show how much the winners receive, how much the losers pay?
Definition and explanation of the indices, e.g., GDP, CPI, and other economic calculations
Discuss the various ways inflation can hinder economic activity. What are some strategies you might use in your life to deal with rising inflation?
What are some goods and services which produce positive externalities generally produced by the government?
Explain why a hotel manager should understand the theory of peak-load pricing. Explain using the theory of peak-load pricing why price ceilings on the pool price are not efficient.
Considering a two-player, one-shot simultaneous-move game, and each player can choose strategy A or B. If both players choose A, they both get $400; and if both players choose B, each of them gets a payoff of $200. If one chooses strategy A and the o..
Explain and show graphically how this market would be affected if there is an increase in the number of dairy farmers that produce hormone-free milk and at the same time south african consumers choose to be more healthy
Sara's income falls from $12 to $9 a week, while the price of popcorn is unchanged at $3 a bag and the price of a smoothie is unchanged at $3.
Diminishing marginal utility explains a lot about consumer behavior in the economy. Select a specific consumer behavior and construct a "mini case study" that highlights the workings of marginal utility and how it affects the consumption pattern.
In the model of public goods, describe how the government determines public spending, and explain what happens if the quantity of GDP goes up.
Major improvements in computer information technology and communications in the late 1990s fueled an increase in investment demand in the United States, which is a large open economy.
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