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In order to financially stimulate the nation, the Federal government injected $900 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consume. Assume the marginal propensity to consume (MPC) was only 0.4. How much of that $900 billion went to increased consumption? Where did the rest of the money go?
Increased consumption:______
Where did the rest go?______
Using MPC = 0.4, what is the spending multiplier (the actual numerical value please):________
What was the implied change in income as a result of the stimulus package?________
Explain is contracting a government service out to some private firm the best way. Does it make economic sense to contract out some government services.
If graphed, would the curve for this equation slope upward or slope downward and are the variables C and Y inversely related or directly related?
Lerner Index to compute your price mark-up. What is your optimal price if you produce 1000 units.
Assume demand and supply conditions in the competitive market for unskilled labor are as follows.
Create a map of the polarity you have chosen from the simulation. Be sure your poles represent a true polarity and that your cells contain at least two to three items each. Explain the polarity dynamic of your map.
Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health insurance that pays 80% of all medical services
Elucidate measures the fed should take to reduce the unemployment rate and expand the economy.
River Beverages is a food and soft-drink company with worldwide operations. The firm is organized into 5-regional divisions with every vice president reporting directly to the CEO, Cindy Wilkins.
Illustrate what is the present rate of unemployment and the current rate of inflation
What is the bank's duration gap in years? If interest rates increase 100 basis points then what will be the predicted dollar change in equity value?
The inverse market demand curve is P=140-Q, and inverse supply curve is P=20+Q. Now Assume a commodity subsidy of $20 is given for each unit of production.
Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..
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