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Read the following popular argument in the U.S. political as well as economics circles. "Private saving goes either toward financing the budget deficit or financing investment. It does not take a genius to conclude that reducing the budget deficit leaves no more saving available for investment."
(a) Explain why this statement sounds correct based on the equilibrium condition in the goods market (in a closed economy): investment= private saving+ public saving. What are the policy implications of the statement?
(b) Explain and show why the statement is wrong based on IS-LM analysis. What are the policy implications?
If both producers and consumers believe that a product's price will rise in the future, then at the present, the equilibrium price. If the demand curve for desktop computers shift rightward and at the same time the supply curve shifts leftward, then
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There are many differences between public-sector and private-sector computer investigations. What do you see are the top three and why?
A firm's current profits are $600,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm:
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Firms A and B are the only firms in the market for widgets. Each firm can choose between cooperating and fighting. If both firms choose to cooperate, each gets a profit of 10. If both firms choose to fight, each gets a profit of 5. Suppose firms choo..
Design a GUI based program that simulates a simple pocket calculater. the GUI displays a single entry filed for output.
Alto music is a levered company providing musical instruments and supplies through its retail outlets. The company is considering expanding into
How many different telephone numbers are possible within the 537 exchange?
Examine the table Turkeys. Trader Tom is a monopolist that sells fried turkeys for Thanks giving dinner for a constant marginal and average cost of $10 per turkey. Assume that Tom has no fixed cost. Tom has 6 potential customers, each of which will b..
Illustrate what is the expected value of the future share price? b. Sharon buys a ticket in a small lottery.
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