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With a U.S. marginal propensity to consume, assumed at 1/2, what will happen to the following with the neoclassical model of national income if the Bush Tax Cuts expired
• Private Saving y-t-c• Public Saving t-g• National Saving y-c-g• Investment i(r)
What would be the loan contract that a bank in a competitive banking industry would accept to loan Newvel worsens. Specifically there is a 50 percent chance of earning $200 million and a 50 percent chance of earnings only $40 million. Fixed costs ..
Smaller multiplier means that the change in government purchases of goods and services or taxes necessary to close an inflationary or recessionary gap is larger. Explain this apparent inconsistency?
Suppose that the most popular car dealer in your area sells 10 percent of all vehicles. If all other car dealers sell either the same number of vehicles or fewer, what is the largest value that the Herfindahl index could possibly take for car deal..
Describe the current general interest rates. Is the current interest level one that promotes or retards growth in the economy.
Assume there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any value it sets, but Chevrolet too is interested in maximizing profit.
If you have two items which are complements in consumption and the price of one of them goes up, what happens to the demand of each of the items.
The tire shop sells 50 tires a day at $75. After they raise the price on tires to $85, they now sell 46 tires a day. what is the elasticity of tires at the tire shop.
Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $30 per month. Producing q gallons of honey in one month requires spending 5q dollar bees and 2q^2 dollars on sugar. How much profit..
Explain in your own words what happened with these companies which caused an international financial crisis. Identify at least one management goal for Fannie Mae and Freddie Mac.
Frequent moviegoers often note that movies are rarely based on original ideas. Most of them are based on a television series, a video game, or, most commonly, a book.
Assuming no population growth or technological progress, find the steady state capital stock per worker, output per worker, consumption per worker and investment per worker given that the rate of saving is 20% and depreciation rate is 10%.
Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year REAL GDP (2000 prices) population 1987 $6,435,000 million..
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