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Discussion 1: Because rent controls reduce the rental price below the market clearing price, the quantity of rental units on the market must decline (meaning there are many frustrated renters). What does this imply about the full cost of renting an apartment including "key money," harassment by the landlord, and so forth? Explain.
Discussion 2: Some observers have proposed higher income and wealth taxes on the wealthy. Given that one's wealth generally depends primarily on how much output one produces, how do these taxes affect the incentives of people who are the most productive? Assume that the proceeds of the taxes are given out to the poor. How does this affect their incentives? Overall, what do you predict will happen to the total income and wealth of society as a result of higher taxes such as these?
Suppose there is a market for an industrial compound, Weon. This industrial compound is used as an input for the production of cleaning agents.
Has the current government policy on this issue been effective? Explain why or why not. What changes would you propose, if you were the president? Explain why.
The real money demand is Md/P= (Y/4) - 125i, where Y is the total output and i is the nominal interest rate of non-monetary assets.
Distinguish between short- run and long-run production decisions and illustrate their impact on costs and economies of scale.
1. If saving dropped sharply in the economy, what would likely happen to investment? Why?
Define Marshall-Lerner condition and J-curve. Explain the relation between the two concepts.
Calculate the annual growth rate of nominal GDP in the following examples: Nominal GDP in 1930: $97 billion. Nominal GDP in 1931: $84 billion.
Comparing which is the current quote has the Japanese dollar appreciated or depreciated.
Explain the "lemons problem" in terms of financial instruments and the role of financial intermediaries in reducing this problem. Please don't answer this question referencing the automobile market.
Describe activities in your organization (Verizon Wireless) or other organizations that result in economies of scale and economies of scope.
Country risk and currency risk are unique to international lending. In this context, please, discuss why country risk and currency risks are unique to international lending?
A is autonomous expenditure, b is the interest elasticity of investment expenditure, k is the income elasticity of money demand, he is the interest elasticity of money demand, It is the tax rate, and mpc is the marginal propensity to consume.
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