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Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly inelastic. If the policy goal is to expand employment for low-skilled workers, is it better to focus on policy tools to shift the supply of unskilled labor or on tools to shift the demand for unskilled labor? What if the policy goal is to raise wages for this group? Explain your answers with supply and demand diagrams.
Bonds issued by the U.S. Treasury consistently have lower yields than other bonds mainly because:
Assume the price elasticity of demand for heating oil is 0.7 in the long run also 0.2 in the short run.
A country with a comparative advantage in the production of a good will------------ production of the good and-------------
Grace treated an irrevocable trust to pay the income to Sam(her spouse) for life, and at his death to distribute the trust property to their children, Ellen and Frank. Ellen and Frank are Co-Trustees. Sam, Ellen and Frank agree that Ellen and Frank w..
Compare and contrast the following risk assessment methodologies: (a) the Delphi technique, (b) sensitivity analysis, and (c) Monte Carlo simulation. Provide a rationale for your response.
What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription? What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year f..
A entrepreneur is trying to decide whether to open a health spa. They currently make $35,000 per year as a weight trainer and will quit their job to open the new spa. If they choose to open the spa, it will cost $200000 per year in rent end other ope..
q.assume that two companies c and d are duo-polist that produces identical products. demand for the products is given
A bank has $500 million in checkable deposits, $600 million in savings deposits, $400 million in small time deposits, $950 million in loans to businesses, $500 million in government securities, $20 million in currency, and $30 million in its reserve ..
Identify three roles for money: money is a unit of account, a store of value also acts as a medium of exchange.
How does an open market purchase by the Fed affect the level of bank reserves and the interest rate? How will GDP be affected? Explain the causal chain. Explain how interest rates and bond prices are related to one another. Why is this important for ..
If Company A has a Current Ratio of 2.0 and its industry peers have an average Current Ratio of 1.0. What does this information indicate?
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