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Define and explain what economists refer to as "crowding-out." Use the following data to graphically illustrate what "crowding-out" looks like using the loanable funds market. Explain your findings.
Before Stimulus
Government Borrowing = $ 0
Savings = $ 250
Investment = $ 250
Interest Rate = 5%
After Stimulus
Government Borrowing = $ 100
Savings = $ 300
Investment = $ 200
Interest Rate = 6%
Create an argument for or against the passage of such a law based on your conception of the ideas on the optimum size of government and on government interventions in the economy (Social Security is an intervention in the economy).
Explain why does the government support public education when the private sector also provides this service.
The Affordable Care Act is expected to help increase access to health care. Health insurance exchanges will be an important part of that. Most people get health insurance through their employers.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
1. are the following statements true or false? explain in each case.a. two countries can achieve gains from trade even
What would the government surplus/deficit be, what would the trade balance be and what changes would occur if G were increased to $941?
Where +Ig determine the equilibrium level of income (Y). Also, determine at equilibrium the total amount of consumption, saving and investment. For this economy, C= 50 + .75Y and How can this information be presented graphically
Many people believe that Congress will eventually have to reduce Social Security benefits in order to reduce the budget deficit. Although most of the changes would not take place until later, assume for the purpose of this problem that Social Securit..
Spending $1,500 more today for a hybrid engine rather than a gasoline engine will result in annual fuel savings of $300. How many years must this savings continue in order to justify the extra investment if money is worth 10% per year, compounded ..
Since under price leadership by the dominant firm, the firms in the industry following the leader behave as perfect competitors or price takers by always producing where the price set by the leader equals the sum of their marginal cost curves, the..
Create a dynamic spreadsheet that not only answers the question of which option is best over a specific time frame, but is also flexible such that changes in the values of variables can be easily made and new solutions provided. The scenario is th..
Explain using macro theory how investment tax break can affect investment, producticities of labor and capital and income.
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