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If taxes increase by $500 and the MPC is 0.8, what is the change in consumption and private savings? What is the change in public savings? what is the change in total savings? What is the change in investment?
The company has determined that it would earn zero economic profits if price were equal to average total cost, and in this case it could sell 20,000 copies. In the short run, what is the profit-maximizing price of e-books relating to do-it-yourself..
Explain the impact of each of the following upon commercial bank reserves: (a) the Federal Reserve sells government bonds in the open market to private buyers;
In the monetary intertemporal model, show that it is possible to have an equilibrium in which money is not held and only credit cards are used in transactions. What condition does the equilibrium price of credit card services must meet? Does monetary..
Explain role of technology in evolution of money is used by consumers. Explain illustrate what has happened to velocity of money because of technology.
The lunch you buy in your school cafeteria is classified as: a) a consumer durable. b) a consumer nondurable. c) a service. d)either a consumer nondurable or a service because it fits into both categories.
A month later, Bob buys a $1000 government bond from the Fed with this money. A) What happens to the money supply (M1)? Does it increase or decrease? By how much? The money supply decreases by $1000. B) How would this impact Bob's future spending? Un..
Explain your reasoning also explain Illustrate what she needs to do methodologically to make a stronger case.
Abenomics seems to me like a straightforward and modern plan of economic revelation through monetary easing and some attempt at structural reform. While it's still early, it looks like many of the predicted effects of this approach have begun to mate..
Suppose the own price elasticity of demand for good X is -3, its income elasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will chang..
Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.
Using aggregate supply and aggregate demand diagrams, illustrate each of the following situations: When will expansionary monetary policy reduce unemployment, but have little effect on inflation? When will contractionary monetary policy reduce inflat..
Which of the following will be recorded as a credit entry in the U.S. balance of trade in merchandise account?
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