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The average inflation in India in 2010 reached 12.1%. During the same period, government deficits became large and interest rates increased. Most economists expected India's growth to slow.a. Suppose that the Indian government reduces it's deficit and gets back to a balanced budget, if other things remain the same, how will the demand or the supply of loanable funds in India change ?b. With economic growth forecasted to slow, future incomes are expected to fall. If other things remain the same, how will the demand and or supply of loanable funds in India change ?c. Distinguish between the crowding out effect and the Ricardo- Barro effect. How are the two effects related ?
An economy is operating with output $400 billion below its natural rate, and fiscal policy-makers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant, so there is no crowding o..
Suppose that a market is described by the following supply and demand equations: Qs = 3P, Qd =400?P Solve for the equilibrium price and the equilibrium quantity.
What is the maximum it would be reasonalble for the owner of a building to pay for a new sprinkler system if it would save $843 per year in insurance premiums?
Information about the company is readily available.
Please write a three paragraph summary due next week regarding either the documentary "Inside Job" or "Capitalism: A Love Story." Discuss the financial crisis and how the current state of capitalism impacted average Americans.
What did classical economists assume about the flexibility of prices, wages, and interest rates What did this assumption imply about the self-correcting tendencies in an economy in recession What disagreements did Keynes have with classical econom..
answer the following questions using examples and applications from the readings. justify your answers using economic
The current inflation rate in Iran is roughly 23% per year (because of economic mismanagement and UN sanctions). How should a prudent Iranian invest a large sum of rials today to preserve/grow its future value?
Presume that ramen noodles are an inferior good. When income decreases, the equilibrium quantity of ramen noodles will ________ and the equilibrium price of ramen noodles will ________. A firm suffering economic losses decides whether or not to produ..
general electric which produces light bulbs, jet engines, washing machines, and so on, kinko's which has a photocopy store near many colleges and univesities, usx corporation which owns ore and coal mines, coke ovens, blast furnaces, mills, and foun..
Potato chip industry in Northwest was competitively structured and in long run competitive equilibrium; companies were receiving a normal rate of return and were competing in a monopolistically competitive market structure.
What might shift the aggregate-demand curve to the left Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
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