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What would happen to the IS curve if the following happened (answer assuming only one thing happens at a time). Carefully explain your reasoning.
a. the marginal propensity to consume decreases
b. autonomous taxes rise
c. investment becomes less sensitive to the real interest rate (d gets smaller)
d. consumption becomes more sensitive to the real interest rate (c gets larger)
e. taxes are collected partly as an income tax (T = T +tY) rather than being exogenous ( T= T)
illustrate what is james opportunity cost of producing chickens which person has an absolute advantage in which activities which person has a comparative.
Radio City promises if you can find a lower advertised price for anything you bought at Radio City, anywhere in town within 30 days, it will return the difference plus 20 percent. A sophisticated game theoretic analysis suggests Radio City may be:
Elucidate what happens to the price of oranges and the marginal product of orange pickers as a result of the freeze. Can you say what happens to the demand for orange pickers.
Based on the current events in our economy, please keep this in mind. When interest rates are held more or less at a constant rate and price risk remains stable, financial leverage does not greatly impact changes is stock return at the market level. ..
The U.S. Tax Code is 12,000 pages long. Do you think we need that many pages to collect revenue for Uncle Sam? Do you think that you should need an expert to figure how much you owe in taxes? The folks in Washington who write the tax laws have to hir..
"Space" is not just meant as Captain Kirk's "final frontier" in Star Trek. "Space" is also a term used in design to have the purpose in a long-term care facility of compensating the enviornmental arrangements to accomodate lessened sensory acuity, an..
Explain two examples of a public and private goods that you have consumed? Why do you think the government has to supply public goods?
A consumer has preferences represented by the utility function U(x1, x2) = ln x1 + x2 . Denote prices and income by p1, p2 and I respectively. Write the utility maximization problem and get the first order conditions. Solve the system of equations an..
Depreciation in the value of the Japanese currency in relation to the US dollar does not allow the Japanese firms to sell more in the USA marketplace.
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
1. Should he take that opportunity? 2. For a price of $25 thousand dollars, ING offers Jay to insure his investment, which means that if Greece does default, ING will repay him his initial investment, which is $50 thousand. Should he purchase insu..
how long would it take to pay back the investment for the required expansion? b. If sales are expected to increase at a rate of 15% per year, how long will it take to pay back the expansion?
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