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Which of the following changes in taxes would lead to the greatest increase in consumption?
1. a $15000 decrease in taxes, if MPC = 0.6
2. a $20000 decrease in taxes, if MPC = 0.5
3. a $12000 decrease in taxes, if MPC = 0.75
4. a $30000 decrease in taxes, if MPC = 0.25
Facts: Nissan took its “Hardbody” truck line and used it as the basis for designing and building its “Pathfinder” sport utility vehicle. The Pathfinder incorporated the Hardbody’s frame side rails, front cab, and front suspension. The tariff schedul..
The US and many other countries are experiencing high government deficits and debts. What, if any, impact does this have on their respective economies? Is government debt bad? Good? It depends? And if so, why and how?
Jones Inc. has $22,000 to invest in securities down company on you'll 11% product or the corporate tax rate for Jones Inc. is 40% with 70% of the preferred stock dividends tax-exempt the investments are consider equally risky so the corporate control..
You have decided to study the market of fresh-picked cherries. You learn that over the last 10 years, cherry prices have risen, while the quantity of cherries purchased has also risen. This seems puzzling because, according to the simple demand and s..
Suppose that the following is true: When w=v=$10, the cost minimizing bundle for q=100 units of output is k=l=20. When w=$8 and v=$10, the cost minimizing bundle for q=110 units of output is l=28 and k=19. Indicate whether the following statement is ..
Suppose the income elasticity of demand for toys is +2.0. This means that: If the income elasticity of demand for margarine is -5.00, this means that:
Evaluating Downsizing Effectiveness
Milo buys an all-terrain-vehicle (ATV) from No-Limit Toys, Inc., on credit but makes no payments on the account. Odell, the owner of No-Limit Toys, calls Milo at home on a Monday morning at three a.m. but that if he does not pay the full amount due w..
An alternative requires $60000 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.
Changes in tax laws and deliberate government purchases that are made to help the economy recover from a recession are known as ____________.
If the price increases by 10 percent, by how much does the quantity of household (a) natural gas and (b) electricity change in the short run and in the long run?
One critic of the North American Free Trade Agreement argued that "it can't be in our interest to sign this deal; Mexico gains too much from it." What does the theory of the gains from trade have to say about that criticism?
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