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1. Suppose the government decides to decrease spending and increase taxes in an attempt to decrease its deficit. Is it possible for the Fed to ease the macroeconomic effects of the spending and tax changes? Explain.
2. If the government implements a spending and tax policy in which it promises to neither increase nor decrease spending and taxes, is it still possible for the budget deficit to increase or decrease? Explain.
3. Explain why the implementation lag is generally longer and the response lag is generally shorter for fiscal policy than they are for monetary policy.
Utilizing the expectations hypothesis and the Taylor rule provide an interpretation of this comment in the article.
Governor Brown, from the state of Taxafornia, wants to increase sales taxes to bring in badly needed revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be great..
Explain why might intangible resources such as human capital and intellectual assets be a more likely source of sustainable competitive advantage than tangible resources.
You can obtain a loan for $100,000 at a rate of 10 percent for two years. You have a choice of paying the principal at the end of the second year or amortizing the loan that is, paying interest (10 percent) and principal in equal payments each year. ..
Illustrate the average cost, marginal cost, and marginal revenue for a firm making a positive economic profit in a short run, perfectly competitive environment. Indicate the profit. Now illustrate what will happen to this profit in the long run.
Utilities which operate nuclear power plants are required to placefunds into a "Nuclear Decommissioning Fund" in order to be surethat adequate funds are available to decommission the plant at theend of its useful life.
A. Hardware, when new and more efficient manufacturing technology becomes available. What does this change affect Demand or supply In which direction does the curve shift Draw a graph and explain what will happen to the price and quantity
For ever of the situations, decide whether Al has increasing, constant, or diminishing marginal utility.
Calculate the effect of the following events on the monetary base:
If the economy is currently in a long-run equilibrium and the central bank increases the money supply, what effect does this have on the aggregate price level Explain why it is important to insulate central bankers from politic..
The good people at Cooper Bank are looking at five mutually exclusive alternatives that have a ten-year life and no salvage value. Due to intellectual property concerns, they can only invest in one project. Park Bank uses a MARR of 9%. Which one..
Because of a recession, the inflation rate expected for the coming year is only 3%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 3%.
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