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1. The federal budget for national defense increased substantially to pay for the Iraq and Afghanistan wars. How would GDP in the United States have been affected if this higher defense spending led to
a. larger budget deficits?
b. less spending elsewhere in the budget, so that total government purchases remained the same?
2. Explain why G has the same multiplier as I, but taxes have a different multiplier.
Covered Interest Arbitrage. The spot and 360-day forward rates on the Swiss franc are SF 2.1 and SF 1.9, respectively. The risk-free interest rate in the US is 6 percent, and the riskfree rate in Switzerland is 4 percent. Is arbitrage opportunity her..
A firm in perfectly competitive 'industry has this cost function: TC = 900 + q^2-If market demand is QD = 1800 - 20P, what is the long-run equilibrium price, quantity produced by the firm and the industry, and the number of firms in the industry?
A topic that reflects one of the following: government regulation of environmental issues in the wake of disasters; government regulation of financial markets; government nationalization or partial-nationalization of a business often left to priva..
On the same graph, draw the daily budget constraint under The Texas Family Assistance Program for the single parent described above. Find the earnings level at which the earnings subsidy ends. Discuss the effect of the program participation on wor..
Given the elasticities in question 2. and assuming that higher gasoline taxes would not shift either the SUV supply curve or the hybrid supply curve, a. explain how higher gasoline taxes would affect the equilibrium price and quantity of SUVs. b. e..
what is the typical pattern of saving for an individual over his or her lifetime what impact does this behavior have on an individual's lifetime consumption pattern what impact does the behavior have on the saving rate in the overall economy
Comparing which is the current quote has the Japanese dollar appreciated or depreciated.
Elucidate how an attempt by the government to lower inflation could cause unemployment.
Explain how would you assess the overall financial health of your organization. What are good and bad signs, if any, in your outlook.
If the minimum salaries is set above the equilibrium salary, does this make a shortage or a surplus of labor, or does it create a lower wage rate
Select ONE of these lessons (principles), (the standard of living depends on a country's production)and explain a/some pattern/s of behaviour that you have observed in the media (newspapers, television, radio, Business Review Weekly, The Economist, e..
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.
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