Consider the following macroeconomy. All amounts are in millions (m.) of $; T=net taxes, which are fixed:

C = 750 + .8 Y_D

                                                            I = 1200

                                                            G = 250

                                                            T = 150

                a. This country’s Parliament passes legislation to have a balanced-budget amendment. What will be the value

             of this country’s balanced-budget multiplier (BBM)? Explain. Calculate the changes in the following variables if

             this country’s Parliament increases its G to $550 m: the GBD (govt budget deficit); eqm Y; and (net) taxes, T?    

             Show what this G increase does to the Z-Y space graph.

                b. What is meant by the “Paradox of Thrift” (POT), aka the Paradox of Saving? Why is it a paradox? Go back to the original eqm of part a. Now prove using multiplier analysis that the POT holds in this economy if c_o falls by $200 m. (ceteris paribus, cet. par.) by either calculating S private (S^p) at the initial eqm Y and then calculate S^p again after the attempt to increase S^p OR prove that the POT occurs using the appropriate math. Show what     happens (cet. par.) using the Z-Y space graph.

What are some of the criteria for forecast evaluation? What is Theil’s statistic?

In 2-3 paragraphs, respond to the following - Do you think that minimum wage laws affect overall poverty? Explain.

4. firms that make direct for foreign investment must evaluate such opportunities requiring capital investment very differently from the methods used to evaluate domestics investments. Describes theses differences from both a capital budgeting and country risk perspective.

Using Keynesian analysis, suppose the economy of Morrisville can be described by the following (all amounts are in millions of dollars):

Ca = 15 + .8(Y - 25)

Ia = 25

Ga = 25

X-M = 5

(a) The Marginal Propensity to Consume is .8. Explain IN WORDS what this means.

(b) In this case, with the MPC = .8, what is the value of the multiplier?

(c) Solve for the level of equilibrium income. In words, what does equilibrium in this context mean?

(d) Suppose the full employment or potential level of income is 50 more than your equilibrium calculation in part C). How large of increase in government spending is necessary to reach full employment? How large of tax decrease? Why do they differ?

In order for integration with other physicians to be successful, what person is needed to arrange the financing of capital needs and to provide administrative leadership?

A. Executive physician

B. Physician liaison

C. Managing physician

D. Physician activist

How would you characterize the major international trade flows unfolding in today’s global economy???

western civilization

identify in 50 to 75 words four specific ideas that make up the political ideology of Fascism, in the years between the World Wars.

1. Dollar stores like Dollar General do not pay customers’ transportation costs. Nonetheless, such stores have the incentive to minimize customers’ transportation costs. Why?

1 What is the effect if economic development in Malaysia?
Five objective neede?

2 What is the effect if economic development in Malaysia in education, economy , health , employment and culture?

3 What is your expectations about malaysia economy and the way you see it?

Scenario: Soybeans are produced in many countries of the world, including Brazil. Consider the market for soybeans in Brazil. Assume that the world price is below the domestic equilibrium price.

a. In a graph, show how large the amount of imported soybeans is (no numerical answer required). Also, show the area on the graph that represents revenue that Brazil soybean farmers receive.

b. Now let’s consider the effect of drought. On a new graph, show what happens to the total revenue Brazil soybean farmers receive when a drought occurs in Brazil compared to part A

c. Explain your answer to part b) in words

d. Using a new graph, show what happens to the total revenue that soybean farmers receive in case of drought in all soybeans producing countries except Brazil

e. Explain your answer to part D in words

Now the scenario changed: the effect of a change in tastes. Assume that the world price is below the domestic equilibrium price and that soybean-based bread suddenly becomes more popular among Brazilian consumers.

f. Compared to your original graph in part A, show what happens to consumer surplus from this change in tastes

g. Explain your answer into part F in words

h. Compared to your original graph from part A, show what happens to producer surplus and imports from this change in tastes.

i. Explain your answer to part H in words

1. The company accountant is uncertain which of three depreciation methods the firm should use for welding equipment that costs $200,000, and has a zero salvage value at the end of a 10-year depreciable life. Compute the depreciation schedule for the welding equipment using the methods listed:
   1. Straight line
   2. Double declining balance
   3. Sum-of-years’ –digits

      Based on your analysis, which depreciation method is most profitable for the firm?

“Request the central bank to raise interest rates. We acknowledge monetary policy considerations by the Central Bank are always finely balanced amongst lowering inflation, safeguarding the balance of payments and supporting economic growth. The Ministry of Finance will request the Central Bank to have monetary policy cooperate with fiscal policy as far as possible by raising the repo rate. This will send a signal for the transmission of higher and rising interest rates throughout the financial system including an increase in savings and deposit rates. Higher domestic interest rates will help to limit capital outflows and improve foreign exchange availability. It will also help depositors and pension funds struggling with real negative returns in the low interest rate environment of the past decade.”

Is this strategy likely to succeed or fail?

Why does price ceiling mean decrease quality?
why does price floor mean Increase in quality?

Spartan Spaces creates room set-ups for college dorms.

Spartan Spaces purchases

Bedding for room set-ups from companies in the US for $8,000;

wall shelving for room set-ups from companies in China for $2,300;

equipment for packaging the set-ups to mail from a Chicago company for $1,000

Spartan Spaces sells

50 room set-ups to students at MSU for $100 per room;

50 room set-ups to students at Western Ontario University for $120 per room.

a.How much does each component of US GDP change?

US Consumption_______________

US Investment________________

US Government purchases____________

US Net Exports ____________________

b. What is the change in GDP? ___________________