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Suppose that and the goal of the policymakers is to decrease C and increase I without changing . a. Can the policymakers achieve these objectives by using only fiscal policy? Explain. b. What combination of monetary and fiscal policies are needed to achieve these objectives? Illustrate and explain.
Suppose a firm's demand curve is given by P = 120 - 0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or inelastic? Please list steps and explain why demand is elast..
What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth? b. How do the implications of an increase in saving with regard to both the level and the growth rate of output differ between the neoclassical ..
Swap arrangements among national central banks
q1. in may 2011 the average price of gasoline in the united states was 3.76 per gallon and consumers bought 5 percent
Which of the following institutions is NOT part of the shadow banking system? An investment bank is susceptible to events similar to bank runs, and may collapse if: The main difference between the financial crisis of 2008 in the United States and the..
What is the relationship between a perfectly competitive firm's MRP curve for an input and that firm's demand curve for that input?
Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.04, and the required reserve ratio is 0.05. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve..
Give two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
You've just won the state lottery and will receive 20 annual payments of $70,000, with the first payment arriving 1 year from today. It is easy for you to borrow or lend on the capital market at an interest rate of 8% per year. If someone offered to ..
The base pay for army recruits is $16,000 per year. The army has been recruiting 100,000 new soldiers each year. But this is found to be inadequate given the need for troops in abroad. what would have to be the increase in base pay to attract the des..
Suppose that a? firm's only variable input is? labor, and the constant hourly wage rate is ?$30 per hour. The last unit? (hour) of labor hired enabled the firm to increase its hourly production from 250 units to 251 units. What was the marginal cost ..
Starting from a state of equilibrium, trace the effects of each of the following. What happened to inventories? How do firms react? What happens to incomes? To consumption expenditure? To GDP?
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