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Read the article "Play around with prices is a bad idea" and answer the following questions:
a) From consumers' point of view, is a negative interest rate bad or good?
b) Assume all your income is spent on two goods: mortgage (in which the price of mortgage is the interest rate) and a composite good (in which its price is $1). With the help of a diagram, explain how a negative interest rate affects your optimal basket of these two goods.
defines and explains a closed system and provides an example. defines and explains an open system and provides an
identify an example illustrating the effect on the demand for hybrid gasoline-electric vehicles such as the Toyota Prius. Then do the same for each of the determinants of supply in Equation. In each instance, would equilibrium market price increas..
Mylie’s total utility from singing the same song over and over is 50 utils after one repetition, 90 utils after two repetitions, 70 utils after three repetitions
Describe how a budget constraint of a house hold in a two-period model is affected by each of the following changes. In each case, do you think the household is better off , or worse off, or is it ambiguous.
when bill clinton took office in january 1993 he faced two major economic problems a large federal budget deficit and
You worked for extra pay on a holiday and therefore missed out on your neighbors’ barbeque. People face trade-offs. You had to miss the barbeque to get something else that we liked.
So explain how popsicles will be sold every day in the short run if the price rises to $2 each? In the long run, if the price rises to $2 each.
Given an MPC of .8, if the C+I equilibrium level of aggregate expenditure is $600 billion, then government expending of $50 billion is included, Determine new equilibrium level of aggregate expenditure?
Prepare a term paper on Fiscal Policy - The Term Paper must be between 600-700 words in length and contain a Title Page as the first page of the paper and a Reference Page as the last page of the paper.
The table above demonstrate the prices and quantities of 2-goods produced in a country in 2006 and 2007. These are the only goods produced in the country.
Suppose DJIA records the changes in prices of 4 stocks. Suppose initially the prices of these stocks are $40. $20, $60. and $80. What is the DJIA.
What is the percentage of this problem a country has a population of 2,130,819, and another country's has a population of 11,862,740 what is the percentage when you compare the two countries
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