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A student is first and foremost interested in beer and would be willing to forgo any quantity a milk for the smallest additional quantity of beer. However, if the beer consumption is given, the student prefers to have more milk rather than less. Draw an indifference curve to represent these preferences.
Assume that the marginal propensity to save increases. If the Fed wants to keep the level of output from fluctuating, should it undertake open market purchases or sales? In your answer discuss how the composition of GDP is affected.
Write in depth on the possibility of interest rate hike over the coming year. What do you believe are the reasons for this occurrence? Comment on the solvency of social security?
What is currently being done to address these access concerns? What else needs to be done?
Molly Grey (single) acquired a 30 percent limited partnership interest in Beau Geste LLP several years ago for $48,000. At the beginning of year 1, Molly has tax basis and an at-risk amount of $20,000. In year 1, Molly's AGI (excluding any income or ..
Explain how to encourage people to spend more to increase aggregate demand and create employment possibilities.
A grocery store in a small town has a supply curve for oranges that is given by the equation P=1/10Q+1. The store faces a weekly demand curve for oranges given by P=16-2/5Q where price is measured in dollars and quantity is measure in bags of oranges..
How does a tax on interest income influence a person’s willingness to save? Can the impact of the tax on saving be unequivocally predicted from theory? Why?
For many years, the overall economic policy of the United States has been a balancing act between fiscal policy and monetary policy. How does this policy affect the economy? How does this policy affect inflation, the economy?
Identify why our economy is not creating jobs fast enough to bring the economy to full employment? Or to put it in another way, what can we do create jobs in our economy?
Suppose that the tradeoff between unemployment and inflation is determined by the Phillips curve: u=un - α(π-Eπ) Where u denotes the unemployment rate, πn the natural rate of unemployment, π the rate of inflation, and Eπ the expected rate of inflatio..
Assume that the 12% rate used in problem 2 is a constant dollar rate (i’). Now discount your end of year cash flows from problem 10 by inflation (f=4%) and re-compute your IRR’ and NPW’. What is the market interest rate (i)______________ IRR’________..
Illustrate what is the distinction between marginal revenue product also marginal revenue. How does the government of Canada redistribute income.
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