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You wish to invest your savings of $20,000 in government securities for the next 2 years. Suppose that currently you can invest either in a security that pays interest of 8 percent per year for the next 2 years or in a security that matures in 1 year but pays only 6 percent interest. If you make the latter choice, you would then reinvest your cash flow at the end of the first year for another year.
Determine how can federal government spending crowd out private sector investment and consumption and does the exent of crowding out depend on whether or not government spending is financed by taxes.
Leonitres bought unit trusts and invested for income. She invested £42,000 in a unit trust with an offer price of £75 per unit, and sold the units after 3 years at the same price. During this period she received income from the units of £9,744. Th..
HOW TO ESTIMATE THIS REGRESSION MODELUSING ORDINARY LEAST SQUARES?
Suppose that Congress passes legislation making it more difficult for firms to fire workers (an example is a law requiring severance pay for fired workers). If this legislation reduces the rate at which people are let go from their jobs
You should provide a clear explanation of why and how the emerging digital technologies have facilitated Social Networking as we know it today
Use the aggregate demand (AD) and aggregate supply (AS) model to show and discuss the effects of the following events on real output (Y), general price level (P), and employment, in the short run and in the long run. Assume that economy is initially..
The question asked was assume that the government imposes a price ceiling on toasters. In particular, suppose that it decrees that a toaster cannot sell for more than $14.
Most macroeconomists believe it is a good thing that taxesact as automatic stabilizers and lower the size of themultiplier. However, a smaller multiplier means that the change ingovernment purchases of goods
Holding the price of computers constant, suppose the percentage increase in the price of barley is 10% and the percentage increase in wage is 5%. The effect of the increase in the price of barley on the rental price of land is then about?
Find the maximum of (X1,X2) of F subject to the constraint: P1X1+P2X2 =I (Income), the answer should be a function of (P1,P2,I)
1.nbspnbsp briefly define the following termsa.nbspnbspnbsp potential gdpb.nbspnbspnbsp long-run aggregate
How will households and businesses react if the central bank reduces the money supply by $25 billion Households and businesses will not react OR Households and businesses will increase spending OR Households and businesses will reduce spending.
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