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What are the burdens of the public debt?
Many people advocate taxing "the rich" to alleviate the debt problem but the truth is that taxes will have to be increased on all income earners. What macroeconomic impacts would you expect to see if taxes are raised "across the board"?
If increasing taxes would still not completely resolve this issue government spending will also need to decrease in order for our country to make significant progress toward reducing the debt. Where should these cuts be made? Why? What impacts would you expect to see?
Advice for an Unprofitable Firm. You've been hired as an economic consultant by a price-taking firm that produces baseball caps. The firm already has a factory, so it is operating in the short run.
What is wrong with this specification? Why is least squares unable to estimate the parameters in this model uniquely? What happens when you try to estimate this model using STATA? Verify that the coefficients on education and experience variables f..
Let MUA = z = 10 ? x and MUB = z = 21 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B-that is, x + y = 1..
the estimated cost to finance an expansion is $15 million and net earnings from increased sales revenue are expected to be somewhere around 10%. The feds expand credit and lowered the interest rates, the real interest rate declined from 3.5% to 2...
d. What happens to the interest rate if the money supply increases from 20 to 30 e. What happens to the interest rate if nominal income increases by 10% f. If the Federal Reserve Bank wants to increase the interest rate to 12%. At what level should i..
Projected government revenues from blood sucking income andconsumption taxes, not to mention pick-your-pocket duties andexcise tases is $243 billion for 2008-2009 fiscal year.
Draw two figures, one above the other. In the top figure, plot the total, variable, and fixed cost curves. In the bottom figure, show the average and marginal cost curves. Use Excel and plot for enough values of q between 0 and 20 such that the va..
A food-products company has recently introduced a new line of fruit pies in six U.S. cities: Atlanta, Baltimore, Chicago, Denver, St. Louis, and Fort Lauderdale. Based on the pie's apparent success, the company is considering a nationwide launch.
A -$2500 746 746 746 746 746 B -$6000 1664 1664 1664 1664 1664 The minimum attractive rate of return is 8%. After calculation we can find that the internal rates of return: for A, IRRA = 15%, for B, IRRB = 12% and for B-A, IRRB-A = 9.8%.
In the late 1990s a growing number of economists argued that world policymakers were focusing too much on fighting inflation. The economists also argued that the technical level of potential output had risen. Show their argument using the AS/AD mo..
A. Find the price and quantity that maximizes the company's profit B. Find the price and quantity that would maximize social welfare C. Find out Dead weight loss
Each worker at Gallo's cork factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of corks produce.If Gallo's produces at a rate of 70 corks per hour and operates 8 hours per day
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