In a closed economy with a government, if Saving is greater than Investment then,
Question 41 options:
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consumpton must be less than saving |
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saving must be less than consumption |
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the government must be running a budget surplus |
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the government must be running a budget deficit |
As the public becomes nervous about the viability of many borowers, the Fed can alleviated some of the panic by:
Question 43 options:
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selling bonds to the public |
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buying bonds from the public |
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cuttng the money suppoy and raising interest rates |
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spending on infrastructure |
If the marginal propensity to consoume is .60 then,
Question 44 options:
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the marginal propensity to save is .40 and the multiplier is 1.67 |
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the marginal propensity to save is .40 and the multiplier is 2.5 |
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the marginal propensity to save is 2.5 and the multiplier is 4.0 |
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the marginal propensity to save is 1.67 and the multiplier is 4.0 |
A law requiring an annually balanced federal budget would tend to:
Question 45 options:
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create inflation |
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make recessions worse |
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magnify the multiplier effect |
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stabilize the economy |
In: Economics
(a) Haris spends all of his income on apples and oranges. He thinks that apples and oranges are perfect substitutes; one apple is just as good as one orange. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples increases to $6 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples. (b) Now assume that he thinks apples and oranges are perfect complements. Apples cost $4 a unit and oranges cost $5 a unit. His income is given by $120 per month. If the price of apples decreases to $3 a unit, calculate the (i) Slutsky substitution (ii) Income and (iii) the total effect of a price decrease on the consumption of apples.
In: Economics
Suppose that changes in nominal interest rate have a negligible effect on velocity of money. Then, if risk premium of a country increases, what happens to consumption, investment and net exports in short run? How does price level change from short run to new long run? Explain.
In: Economics
The following are costs incurred by a shoe manufacturer. Determine and explain whether each one is a fixed cost or a variable cost or has some element of both.
(a) The cost of leather.
(b) The fee paid to an advertising agency.
(c) Wear and tear on machinery.
(e) Electricity for heating and lighting.
(f) Electricity for running the machines. (
g) Basic minimum wages agreed with the union.
(h) Overtime pay.
In: Economics
Assume that there are only two countries in the world: USA and Brazil, so all international transactions are only between those two countries. The table gives the information regarding international transactions of USA in 2018:
|
ITEM |
Billions of US Dollars |
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Imports of goods from Brazil |
185 |
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Imports of services from Brazil |
120 |
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Foreign direct investment by Brazil to the USA |
14 |
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Exports of goods to Brazil |
238 |
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Exports of services to Brazil |
155 |
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US investment to Brazil |
110 |
|
Income received from Brazilians |
12 |
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Income paid to Brazilians |
6 |
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Net unilateral transfers between USA and Brazil |
5 |
|
Balancing item |
-3 |
In: Economics
In the case of floating exchange rates. Can you discuss the macroeconomic interdependence of crises. Provide examples of countries. Include in your discussion the idea of Monetary Policy coordination failure.
In: Economics
What are your views on political instability in poor countries?
In: Economics
Suppose two firms are engaged in Stackelberg Competition. The demand curve is P = 56 - 2Q and MC=20. What is the equilibrium market quantity?
In: Economics
Assume that there are only two countries in the world: USA and Brazil, so all international transactions are only between those two countries. The table gives the information regarding international transactions of USA in 2018:
|
ITEM |
Billions of US Dollars |
|
Imports of goods from Brazil |
185 |
|
Imports of services from Brazil |
120 |
|
Foreign direct investment by Brazil to the USA |
14 |
|
Exports of goods to Brazil |
238 |
|
Exports of services to Brazil |
155 |
|
US investment to Brazil |
110 |
|
Income received from Brazilians |
12 |
|
Income paid to Brazilians |
6 |
|
Net unilateral transfers between USA and Brazil |
5 |
|
Balancing item |
-3 |
In: Economics
In: Economics
After having described the functioning of the walrasian economy (links with the various schools ,hypotheses ,conclusions) you will discuss its contributions of its limits.
In: Economics
Country A and B each have 1000 units of labour. In-country A one unit of labour can produce 10 computers or 30 kg of cheese. Country B can use one unit of labour to produce 14 KG of cheese or 16 computers. Suppose country B follows its comparative advantage in deciding what to produce and trades with Country A at a trade price of 1.7 kg of cheese per computer and country B consumes 6400 computers at home, then country B gain from trade would be
______ kg of cheese
do not round your calculations untik you reach the final answer. Round two decimals.
In: Economics
Tell the economic story of the US 2000-2010 decade. Be sure to include specific examples and data points that help tell the story. Like a brief overview of what happened in the economy.
You can include things like the GDP, civilian unemployment rate, interest rates, unemployment/inflation, foreign trade, and fiscal policys that effected this decade. Not too much information but just an overview. Thanks!
In: Economics
A manufacturing company is planning to purchase a conveyor belt. They would like you to compare two following conveyor belt options and let them know which conveyor belt company should purchase at MARR is 12%. Justify your answer using PW analysis.
Convey belt 1: initial cost 30,000 and annual maintence cost is 5,000 decreased by 800 each year until the end of its life. the annual savings is 20,000 and salvage is 10,000. The useful life is 3 years.
convey belt 2: Initial cost is 30,000 and annual maintenance cost is 10,000 decreased by 12% each year until the end of its life. annual savings is 15,000 increased by 22%. The salvage value is 20,000 and the useful life is 4 years
In: Economics
Because technology is rapidly changing the world,
grandparents aren’t the experts they were in past generations when
the pace of change was slower. A mobile society and large
segregated “adult” communities keep grandparents and grandchildren
apart for most of their lives.
Children today look to their peers to teach them
“important” things such as the best TV show, the newest fashions,
drug information, sex information, etc. According to Robert and
Shirley Strom, this undermines our society because it breaks it up
into special interest groups who feel they have nothing in common
with each other.
Do you agree with the Stroms' assessment? Why or why
not? How might this phenomenon affect generativity? Does it matter?
If we should improve intergenerational relations, how could we best
go about doing it?
In: Economics