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Why will there be less crowding out of private spending by government spending the less sensitive consumption, investment, and net exports are to changes in interest rates?
In the loanable funds market,
An example of a permanent supply shock is:
Important policy objectives of the federal government include economic growth, high employment, price stability, and a balance in international transactions. The achievement of these objectives is the responsibility of monetary policy, fiscal policy,..
Suppose 100 identical firms produce in an initial competitive market: P=10-Q/200 and P=1+Q/200. How much would each firm like to produce at the price set by the cartel. What are the advantages and disadvantages of a cartel?
Should college be subsidized? All U.S. states subsidize education for college students, mostly by charging below-cost tuition. Nearly free tuition is available in many European countries and has been proposed in California. Should the government subs..
Suppose Regions Bank has initially $10 million in reserve, $50 million in securities and a borrowing of $5 million from National Bank. Its total deposit is equal to $50 million. The desired reserve ratio is 10%. Would you recommend any actions for th..
Suppose a US company purchases 1 million Euros’ worth of automobiles from a German car manufacturer, and pays with the proceeds from the sale of Eurobonds. Calculate the impact (debits and credits) of each of these transactions for the balance of pay..
The so-called theory of general equilibrium (including the many variants) is a cornerstone of economic theory, occupying economists' minds since (at least) the 1800s
Assume the exchange rate is allowed to fluctuate freely. Using the IS-LM-IP model, graphically illustrate and explain what effect an increase in government spending will have on the domestic economy. In your graphs, clearly label all curves and equil..
You learned that Texas has a tax system that is generally “regressive” because it relies heavily on sales taxes rather than income taxes. What are the definitions of regressive, flat, and progressive when it comes to taxes? Why a sales tax is conside..
What does gross domestic product (GDP) tell us? How did GDP change from 2008? What caused these changes? What is real GDP? What was real GDP in 2008 and has it changed since 2008? What was national income (NI) for 2008? What does national income tell..
Demonstrate/discuss your theoretical understanding of the characteristics of monopoly and oligopoly, also apply your understanding to provide examples of each of these two market structures. What is the distinguishing feature of a monopoly? How does ..
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