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Suppose that taxes and transfers are fixed, so that a change in the government’s spending is equivalent to a change in its deficit. The multiplier is three. For each increase in the deficit of 100, interest rates rise by one percentage point. When the government increases its spending by 200, what is the change in equilibrium GDP if:
a) For every 1 percent increase in interest rates, investment spending falls by 50.
b) For every 1 percent increase in interest rates, investment spending falls by 100.
c) Investment spending is not affected by interest rates.
q.throughout history the most popular form of money has been gold.a. provide 3 reasons why gold has been such a popular
An investor has an opportunity to buy a parcel of land for $100,000. He plans to sell it in two years. What will the sale price have to be for the investor to get a 25% constant dollar before-tax ROR with inflation averaging 10% annually? What escala..
A family that won a $100,000 prize on America’s Funniest Home Videos decided to put one-half of the money in a college fun for their child who was responsible for the prize. If the fund earned interest at 6% per year, how much was in the account 14 y..
What is the equilibrium price and quantity of apartment rentals in Lafayette? Suppose the government imposes a price ceiling of $150. What is the impact on the equilibrium outcome? Does this price ceiling necessarily increase consumer surplus? Explai..
If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency.
When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market.
What is each fisherman's profit-maximizing output now. Find the market price and the total output.
Explain difference between nominal and real variables and give two examples of each. According to principle of monetary neutrality, which variables are affected by changes in quantity of money.
The following table is a record of the data of a competitive firm on labour and output: Reproduce the above table on your answer sheet and complete the table. How many units of labour should be employed to maximise profit? Briefly explain your answer..
what is the growth rate of constant- dollar real gdp using year 1 as the base year? What is the growth rate of constant- dollar ral GDP using year 2 as the base year?
A lone shepherd can graze 10 sheep per year in a meadow. Each additional shepherd who uses the meadow reduces the number of sheep that can be maintained by one per shepherd. What are the net benefits to society of this outcome? What is the efficient ..
why do you think drug companies spend so much on advertising for drugs they have a patent on (essentially giving them monopoly power) but so little on drugs with an expired patent when generic alternatives are available
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