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In Keynesian income-expenditure model; how does a decrease in govt. expenditure in purpose of controlling growing budget defecit effect the equilibrium GDP?
If the bond's current market price is $913, what is the fair market price of the bond?
In the Keynesian framework, which of the following event might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. 1-2) Rapid growth in the economy of a major trading partner.
When comparing a $100 billion increase in government purchases to a $100 billion decrease in tax revenue, the effect of the increase in government purchases on aggregate demand is
Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007? Global saving and investment imbalances Financial market innovation Deeper levels of integration across financial markets Challenges and failures in fi..
How does the issues in Riverbend City escalate into conflict and what is the use and awareness of negotiation
If taxes were cut by $1 trillion and the MPC was 0.75 by how much would the total spending a). Increase in the first year with two spending cycles ? b). Increasing over three years with two spending cycles per year? C). Increase over an infinite ..
Use the principles of supply and demand to address a predetermined goal (set by you) in the gasoline market. Be clear on what the current market indicates and why and what your future goal is. We will probably revisit some of your choices in future m..
According to the liquidity preference model, if the Federal Reserve increases the money supply, the equilibrium interest rate ________, and this leads to _________ in the quantity demanded of nonmonetary interest-bearing financial assets.
Suppose that Tiffany has an income of $20 per week and she spends it on frozen pizza (P) and beer (B).The price of a bottle of beer (PB) is $1 and the price of frozen pizza (Pp) is $5 per pizza. Derive an equation for the budget constraint. What is t..
Suppose that there is a net government disbursement of $80 (i.e., the government’s payments to the public exceed its receipts from the public by $80). In the absence of any offsetting transactions by the Bank of Canada, explain the effects of this ne..
What are the two basic strategies to motivate adoption? Give information on each.
Discuss why most historians attribute the causes of the Great Depression to speculators, Wall Street, business people, and rich people. Explain why The Banking Act of 1934 (Glass-Steagall Act) was enacted, and describe the effects. Explain why FDR to..
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