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Suppose that Parliament passes an investment tax credit, which subsidizes domestic investment. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance?
Suppose that individual forecasts of a particular interest rate are normally distributed with a mean of 10 percent and a standard deviation of 1.6 percent. (Round k, Q1, and Q3 to three decimal places, and round percentages in part a to the neares..
1. Suppose the French suddenly develop a strong taste for California wines. Draw a graph below to answer the following questions: a.) What happens to the demand for dollars in the foreign exchange market b.) What happens to the value of d..
Suppose that there is an increase in total factor productivity,which implies that all firms offer higher wages. In the search model of unemployment,determine the effects of this on the reservation wage and the long-run unemployment rate. Explain your..
What are automatic fiscal stabilizers - How do these stabilizers stabilize real GDP in the face of AD and AS shocks
One such proposal would have required the U.S. and Mexican governments to consult at least every three months to review data on both countries' sugar markets; to establish a permanent joint sugar commission to coordinate national sugar policies, m..
Henry, a resident of Nevada, sued Adam, a resident of Utah, in the federal court of California. He sought $60,000 damages for personal injuries arising from an automoblie accident that occurred in Los Angeles, California.
Assume that $5000 is deposited today, three years from now, six years from now, nine years from now, and twelve years from now in a savings account which earns 5% annual interest. What is the balance at the end of year 13?
Assume that capital and labor both exhibit diminishing marginal returns, so that capital can be substituted for labor in the production process (and vice versa), but capital and labor are not perfect substitutes. How would such a tax affect the rel..
What is the entire relationship between the quantity supplied and the price of the good?
An analyst has timed a metal-cutting operation for 50 cycles. The average time per cycle was 10.40 minutes, and the standard deviation was 1.20 minutes for a worker with a performance rating of 125 percent. Assume an allowance of 16 percent of job..
Some people complain about the decline of the small family farms and its replacement with the huge corporate mega-farm. Discuss the following points with regard to this issue?
the marginal revenue curve of a monopoly crosses its marginal cost curve at 30 per unit and an output of 2 million
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