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If the marginal propensity to consume were 0.9, how large would each of the following need to be in order to restore full-employment equilibrium?
a) a tax increase [? billion]
b) a government spending cut [? billion]
c) a cut in income transfers [? billion]
Little Kona is a small coffee company that is considering entering a marketplace dominated by Big Brew.
The Gauss-Markov theorem states that OLS estimates are BLUE. List what word each letter in the acronym BLUE stands for. Then, give an intuitive definition for each of these words ?
Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. Elucidate how would you price these two events differently.
Now assume a 7% real discount rate. What would the present discounted value of the project be? Should the project still be approved under this discount rate?
You purchased a bond for 9500 dollars. The bond matured in 4 years and you sold it for 111,000 dollars. The par value (face value) of the bond was 10000 dollars. Interest payments were made every 6 months. The personal rate of return you received (so..
Would company benefit by advertising in this perfectly competitive market. What would happen to price of toothpaste, would it rise or fall. What would happen to profits company makers.
In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return and 180-day securities have an annualized return of 4.5%.
Explain how much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent.
How macroeconomic equilibrium does an economy achieve. Elucidate what affect does a high level of inflation have on macroeconomic equilibrium.
Suppose which in the 1990s, the average retail price of a roll of Kodak film was $6.95 also which Kodak's marginal cost was $3.475 per roll.
Converse the positive also negative contributions of FDI inflow to the competitive benefit of host countries with regard to the subsequent matters
You have been asked to produce a forecast for your company's new product (bottled water). List and briefly describ four factors you would consider before giving the forecast.
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