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The only change which happened between the previous and the current year is that while in the previous year all of the 100 million worth of imports were used for consumption, now all imports are directed exclusively to investment. Therefore this will affect the national account of the current year by:
(a) A decrease in consumption by a 100 million and an increase in investment by 100 million; (b) A decrease in consumption by 100 million times the multiplier and an equivalent increase in investment; (c) A decrease in consumption by 100 million times the multiplier and an increase in investment by 100 million; (d) No change at all.
If a $24 per share stock has a P/E ratio of 20 and pays out 40 percent of its profits in dividends, How large is its dividend? What is the implied rate of return?
If a person with utility from income is U = ln Y (where Y is income) and an initial income of $50,000 faces the risk of losing all of her income except a dollar with a likelihood of one percent, what is the most you could charge such a person for ful..
Prove utilizing a graph, that a diagonal line through the original would intersect each indifference curve once.
If the US were to triple the amount of food stamps and housing assistance, then the direct and immediate effect on US poverty rates as officially measured would be:
Within the past 5 years a certain country ended its almost 2-year peg (fixed) of its own currency to the US dollar. What country was this? What year did it end? Why did it end its fix to the US dollar?
Each of the following will shift the AE Curve for the U.S. except: an improvement in technology of semiconductor chips that increases efficiency and profit opportunities.
Nutritional Sciences LLC sponsor the “Quarter Million Dollar Challenge,” a contest requiring contestants to use the company’s nutritional products and training plants to lose weight and get in shape during A 13-week period. A panel of judges would se..
You own a rock climbing gym. Ryan is one of your customers. Ryan receives utility from rock climbing and pizza (Ryan exhausts his income in each period on the two goods). Ryan has $100 of income. At a price of $20, Ryan buys 0 sessions. What is the i..
What happens if the FOMC members DISAGREE on what to do with Monetary Policy? How is a compromise or resolution reached?
Consider the case in which 100 adults each own an antique stamp, purchased for $1 each in 1972, and these individuals value the stamp. Each owner values the stamp differently, between $1 and $100
If the goverment of Langkawi decides that it cannot wait for the economy to self-correct in the long-run, what policy action could it posibaly take now? what trade offs,if any, will it have to be prepared to make in term of economic outcomes?
The economy slips into a recession and the government is thinking of providing a stimulus package to boost the aggregate demand. Which of the following is most likely to increase the aggregate demand, all else the same? Increase taxes Reduce transfer..
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