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Identify each of the following policies as either fiscal policy or monetary policy and explain why.
a) The cash for clunkers program which provided a tax credit for purchasing a new vehicle.
b) The FDIC insured amount for bank accounts is increased to $250,000 and bank reserves are paid interest.
c) New construction projects on highways and roads paid for as part of the recovery act.
For ONE policy, explain the intended effect on the economy using the AS-AD model.
An insurance market may fail to exist due to asymmetric information and adverse selection that results from it (buyers don’t know the repair risks associated with the seller’s car, just like insurers may not know the “repair” risks associated with th..
Which of the following best describes the relationship between China and Japan in the 1600s? From the mid-1500s to 1830, the largest group of immigrants to the Americas consisted of. What was the leading Russian export that traveled on the Inner Eura..
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in this market will ultimately try this brand. Develop a general model for predicting long-..
How do we work the categorical operation called obversion? What is the purpose of studying a sample? In studying a sample, what is meant by the term sampling frame?
The firm output sells competitively explain how many tons of output will be produced.
Social entrepreneurs generally attempt to create win-win situations and make the world a better place. Is making the world a better place ethically incompatible with making a profit? Why, or why not? Can you identify a firm with a high degree of focu..
In the simple linear regression model yi = βˆ 1 + βˆ 2xi + ˆei , where E(ˆei) 6= 0. Show that the model can always be written with the same slope, but a new intercept and error term that does not violate the property that E( ˆei) = 0.
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project, where the cost of the lawsuit might range from $10,000 to $500,000 with an associat..
Porter's Five Forces Model, Porter's Five Forces Model is a "classic model" that is still relevant for today's management. This is primarily an industry-based view toward competition. It can be used to support competitive decisions facing manager..
Decide if the following statements are TRUE, FALSE, OR UNCERTAIN. Explain your reasoning in each case. Consider the economy in the short run.
The sales manager of a retail outlet suggests that the best way to increase the number of customers is to have a sale. If a 10 percent price cut doesn’t bring in enough customers, then he’ll cut prices 20 percent. Increased cash flow should take care..
Welfare increases as more transactions are made in a market. Explain how derivatives lead to an increase in the number of transactions that are made in the market for the underlying asset upon which they are based.
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