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What is fiscal policy? What possible fiscal policy measures can be taken with respect to expenditure and income to correct excess demand and deficient demand in the economy?
Suppose if you were chief economic advisor to the President at present, what are the 3-recommendations you would make to him to improve overall effectiveness of the economy?
Recently, however, a major competitor launched a new line of athletic shoes. The firm now revises sales forecast downward to 14,000 units, with the unit contribution margin remaining the same. Should the firm cancel the launch?
Assume that the banking system initially has no excess reserves and that the reserve requirement is 10 percent. Also suppose that velocity is constant and that the economy initially is operating at its full-employment real output.
For each of the following state a) if the demand or supply curve will shift left or right, (b) the effect on the exchange rate, and (c) if it is a long, medium, or short run effect based on the supply of and demand for the Canadian dollar by the U.S...
Explain what is the effect on the exchange rate of an increase in the country's money supply according to the asset market or portfolio approach and in what ways does it differ from the monetary approach?
for most purposes, money lowers the cost of making transactions relative to barter-the direct exchange of one good or service for another. However, barter has not disappeared, even in an advanced economy such as that of the United States. Can you ..
Describe both foreign income and repatriation of earnings using 3-examples that any worker can understand.
Describe what happens to the price of a bond that pays a fixed percent of the face value every year when interest rates in the economy raise and Discuss the advantages of the Fed increasing interest rates when the GDP gap is positive
Stacy's Dress Shop received a $1,050 invoice dated July 8 with 2/10, 1/15, n/60 terms. On July 22, Stacy's sent a $242 partial payment. What credit should Stacy's receive? What is Stacy's outstanding balance?
What would happen to the growth rate of the money supply if foreigners lost confidence in the US dollar as a result of current uncertainty over the crisis of the fiscal cliff in the US economy while the Fed was trying nonetheless to maintain its c..
Wholesalers of roses (the firms that supply your local flower shop with roses for Valentine's Day) buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in the United States.
The public corporation is owned by multitude of shareholders but managed by professional managers. Managers can take self-interested actions at the expense of shareholders. Discuss the conditions under which the so-called agency problem arises.
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