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Q1. When corporate income taxes are assumed to exist, Modigliani Miller and the traditional theorists agree that capital structure does affect value, so the basic point of dispute disappears. Do you agree? Why or why not?
Q2. Suppose that G increases by 100 to 600 and we assume, as we often do, that firms match the increase in demand by increasing Y by 100. In round two, this is an increase in income of 100 to consumers. Trace out exactly where this 100 increase in income goes in the second round and compare to our simpler treatment with a closed economy and lump sum taxes. Be sure to include the leakages, taxes, Savings and NX. Use the same conditions as stated above.
We are all familiar with fluctuating prices of gasoline at the pump. Explain why does this happen.
Calculate the percentage change in nominal gdp, real gdp and the gdp deflator in 2008 and 2009 from the preceding year. for each year identify the variable that does not change. explain in words why your answer make sense.
Give a detailed explanation about Elucidate how the engineer's income generation as described above affects GDP
Over the last decade, several firms have entered this industry and, as a consequence, Forey is earning a return on investment that roughly equals the interest rate. Furthermore, the four-firm concentration ratio and the Herfindahl-Hirschman index ..
Two Arguments:In a separate group discussion board, present two arguments. The first should argue in favor of the proposed merger, from the perspective of the firms
Converse briefly its relationship to microeconomics also other related fields of study such as finance, marketplace also statistics.
Illustrate what is the basic objective of monetary policy. What are the major strengths of the monetary policy. Why is monetary policy easier to conduct than fiscal policy in a highly divided national political environment.
This document contains various important questions and their appropriate answers in the subject field of Economics.
government official proposed which gasoline price controls be imposed to protect the poor from rising gasoline prices.
Illustrate what is the efficient price of water. Illustrate what are the quantities of water allocated to agricultural also industrial use.
Milton Freedman, the champion of the Monetarists School of Economics, basically proved that it was monetary theory, changes in the money supply, that was the only way to affect the economy. Pump priming was false.
Describe why this does not represent a violation of the law of demand. Which of the subsequent best explains illustrate what a forward contract.
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