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Following the recession, the rate of savings in the united states doubled. why do you think this is? How do you think the increase in savings affected overall consumption? Since, on average, 70% economic activity in the United States is based on consumers purchasing goods and services for consumption, how do you think the increase in savings affected the aggregate expenditure?
Velocity in the country of nemedia is always stable.In 2001,the money supply was 100 billion and real GDP was 300 billion .in 2002,the money supply increse by 10 percent,real GDP increased by 5 percent and nominal GdP equaled 660 billion.by how m..
John Maynard Keynes was the first to show that government policy could be used to change aggregate output and prevent recessions by stabilizing the economy. Describe the economy of the world at the time Keynes was writing.
If American consumers decrease their spending on imports but leave their overall consumption spending constant, "hence buying more locally made goods", with all other factors constant what would happen to America's current Account and why ?
In 2005, then Federal Reserve Governor Ben Bernanke, now Federal Reserve chairman, said in a speech: "Over the past decade a combination of diverse forces has created a significant increase in the global supply of saving - a global saving glut.
Company A manufacture cement sifters. The process includes melting of metals and chemicals which give sifters strength. In the manufacturing process, waste is produced and released into river that runs alongside of the plant.
Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Corporation They have compiled the following data concerning currencies in Sweden, New Zealand, and United States.
Our economy thrives on competition. Market forces will lead companies to manufacture the mix of goods most desired. Unforeseen events can be responded to in a rational manner.
Suppose that a certain manufacturer has a monopoly on the sorority and fraternity ring business (a constant-cost industry) because it has persuaded the "Greeks" to give it exclusive rights to their insignia.
Free trade initiatives discuss against tariffs, quotas, and any other fence to trade. The rush of imports from nations that have a comparative advantage, however, meets with resistance from domestic industries threatened through those imports.
Commercial real estate prices and rental rates suffered substantial declines in the past year (Newsweek, July 27, 2009). These declines were particularly severe in Asia; annual lease rates in Tokyo, Hong Kong, and Singapore declined by 40% or more..
Ross Perot added his memorable "insight" to the debate over the North American Free Trade Agreement when he warned that passage of NAFTA would make a "giant sucking sound" as United State employers shipped jobs to Mexico,
Explain and estimate the price elasticity of demand for a good or service of your firm, or a firm of interest to you. Estimate the price elasticity of demand by guessing at the effect of a 10 percent price change on the sales level.
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