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Economists think that the marginal propensity to consume for the Australia economy is between 0.9 and 0.95. Based on our simple multiplier formula, this would imply that the multiplier for Australia should be at least 10. However, many economists agree that the spending multiplier is close to 2.0. What might explain this supposed anomaly?
Write an essay about the importance of the Triple bottom line: economic, social and environmental sustainability. Evolution of ethical theory as applied to individual and organizational behavior in business over historical periods.
Based on your personal experience, please post one good that you think has elastic demand, and one good that has inelastic demand. Please include an explanation as to why you chose these goods.
Explain what is meant by price floors and price ceilings. What are the consequences of a) a price floor that is higher than the market equilibrium price; b) a price ceiling that is lower than the market equilibrium price. Demonstrate your answers gra..
A fleet manager must choose between two trucks to purchase for a company's fleet. The company will keep either truck for 4 years. Truck A costs $29,000 and has a market value of $16,000 after 4 years. Truck B costs $33,000 and has a market value of $..
Suppose current market federal funds rate is 0 percent. The interest rate on long term government bonds is 5 percent and risk premium for this bonds is 2 percent. Assume liquidity premium hypothesis and expectations hold. Explain how the Fed can boos..
1.) What is the cost of entry for entrepreneur aspiring to introduce coffee in the Japanese Market?
Predatory acts of firms are generally against the law in the United States. Specifically in terms of pricing strategies of firms in various market structures, however, it is possible for competing firms to work together to determine a solution benefi..
According to the rule for optimal input usage, a film should hire a person as long as her marginal income product is greater than her marginal cost to the company.
Suppose the welfare benefit formula is. How large is the benefit if wages equal. What is the marginal tax rate on.
Clothing costs $2 per unit always. Find Julies optimal basket of consumption.
If price elasticity of demand = -1.5 and price decreases by 10 percent, then
Consider a consumer who has utility function u(x, y) = min{2x, 3y} where x, y are amounts of goods X, Y consumed respectively. If there is an inflation which doubled the prices px, py as well as the wealth w. Consumer preference is still the same as ..
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