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This chapter uses the analogy of a “leaky bucket” to explain one constraint on the redistribution of income.
1. What elements of the U.S. system for redistributing income create the leaks in the bucket? Be specific.
2. Do you think that Republicans or Democrats generally believe that the bucket used for redistributing income is leakier? How does that belief affect their views about the amount of income redistribution that the government should undertake?
If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that the risk-free interest rate is 2.5 percent, the growth rate of dividends is 1 percent and the current level of dividends i..
Are the salaries received by professional sports athletes outrageously high? Should the CEO's of financial institutions receive more monetary compensations than entertainers, since their jobs contribute more to the development of the country? What ar..
Describe how the U.S. went from budget deficit to budget surplus and back to budget deficit. Remember to use your text as well as other source content to fully respond to this discussion.
Elucidate why a currency appreciation does not improve a nation's balance of trade.
q. recall that is the economy continues to be strong abc company may need to increase its production by about 50
What are required reserves? What are excess reserves? Explain how the Fed can affect the quantity of excess reserves in the banking system. Explain why an individual bank can increase the money supply by the amount of its excess reserves, whereas the..
Suppose that the inverse demand curve is: p(q) = a − bq, and the cost function is: c(q) = cq. How much consumer surplus is generated when the price is p*? How much producer surplus is generated at p* If the monopolist can only set a linear price (tha..
They ask you what directive they should give to the open market desk. you tell them , being as specific as possibel, using the money multiplier. they ask you for two other ways they could have achieved the same end. You tell them.
What steps would you first take to perform an after tax analysis to determine a better investment for the following example: Toby is in a 35% bracket for income taxes (state and federal combined), and only 40% of a capital gain is likely to be taxabl..
What are data in table saying. What is an implication of pattern shown. What are data in table saying. What is an explanation for pattern shown.
By using an AD-AS model (Keynesian), what are the effects of a recession (which was caused by a decrease in aggregate demand). Assume economy started at general equilibrium. Label your graph. What two options would you have as the chairman of the Fed..
Mary is in equilibrium. The MUa =6, MUb =12, Pa=2, what is the price of b? Zach is in equilibrium. The MUa=2, MUb=8, what is the price of a in terms of the price of b? What is the utility maximizing or optimization condition?
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