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Consider the model yt = a + b0*xt + b1*xt-1 + b2*xt-2 + vt where vt is an independent random error term with zero mean and constant variance. The one-period interim multiplier is:
a. b0
b. b1
c. b0 + b1
d. b0 + b1 + b2
e. none of the above
Suppose you decided to open a copy store. You rent store (signing a one year lease),and you take out a loan at the local bank and use the money to purchase 10 copiers. Six month later a large chain opens a copy store two blocks away from yours
q1. suppose the general public purchase 500 million in government bonds and pay for them by drawing cheques on their
Preparing to Conduct Business Research
Draw the opportunity set of a consumer with an income of $1200 who faces prices of Px = 10 and Py = 5. What is the market rate of substitution between the two goods?
Now assume that once he earns $400 he loses all his food stamp assistance. How does this change his budget constraint.
The utility is given byu(x, y) = xy + y. What are the demand functions for x and y. Describe how demand curves for x and y are shifted by changes in I or the price of the other good.
Among different market structures, which one do you believe provides the highest possible return for a new company as well as why.
Suppose that your city government is interested in reducing littering. Currently, there is a $100 fine for littering and there is a 10 percent probability of being caught if you litter. If litterers are risk averse, which policy would lead to a large..
In a recession, needs-tested spending and induced taxes
q1. firm abc measured its mp of labor curve to be the followingmp 4000 - 2l where l is the number of hours of labor
Corporate officers in the United States are subject to high accountability standards and harsh penalties under the _____ Act.
Why does the concept of money neutrality imply that monetary policy to stimulate investment will be ineffective in the long run?
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