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A bank recently announced an "instant cash" plan for holders ofits bank credit cards. A cardholder may receive cash from thebank up to a preset limit (about $500). There is a specialcharge of 4% mad
Suppose the government decreases spending by $20 billion. How much will this change equilibrium GDP if the MPC is 80 percent and the tax rate is 1/6 (16.6 percent)
Suppose that the government decreases spending by $100 billion.What happens to aggregate demand What is the likely effect onprices and output Where are the new equilibrium price level andGDP relativ
If we examine the market for rice in USA during the year2007 and 2009, the demand of rice was higher in the year 2007 but it felldown during the year 2009, due to the drop in the export demand of ri
Prepare a two- to three-page analysis by answering the questionsbelow. Be sure to cite your references using APA format.Assume that the officials in Ecoland have compiled the following information abo
Mr. Smith has a weekly income of M = $24. Initially the prices of Xand Y are both $2/unit and Mr. Smith buys 6 units each of X and Yeach week, a bundle on indifference curve I0. Then, ceterisparibus
A student borrowed $5,000 which she will repay in 30 equal monthlyinstallments. After her 25th payment she desires to pay theremainder of the long in a single payment. At 15% interestcompounded mon
A firm pays in cash $250000 inwages, $55430 in interest on borrowed money capital and $74320 for the yearly rental of its factory building. If the entrepreneur worked for somebody else as a manager,
The population of an isolated island consists of 10 people. In oneyear, each person can either pick 100 bunches of bananas or,alternatively, tend an oven that bakes bananas into banana bread.There i
A monopolist has the following total cost curve. where P(Q) is the price that consumers are willing to pay forQ units of output. Find the welfare loss due to monopoly. Assume that acompetitive firm wi
A firm pays in cash $250000 in wages, $55430 in interest onborrowed money capital and $74320 for the yearly rental of itsfactory building. If the entrepreneur worked for somebody else as a manager.
a, If the prie of output is p>c, how much should a typicalfirm produce can there be a competitive equilibrium in this case b, If the price of output is p<c, how much should a typicalfirm produce
Suppose the government increases the retirement age to 75. Thatis, workers will not be eligible for full retirement benefits untilthey are 75. What effect will this have on aggregate supply
Assume the economy is at equilibrium and output is at 20,000. Arightward shift in the supply curve shows that the economy canproduce 26,000 at the same price as before. Where will output be atthe ne
Boris Borrower and Lynn Lender agree that Lynnwill lend Boris $10,000 and that Boris will repay the $10,000 withinterest in one year. They agree to a nominal interest rate of 8%,reflecting a real in
If an editorial says that Americans are saving at lower amounts ie,20 years ago the average savings rate was 20% of disposableincome. The editorial predicted that this would drop to5 percent in les
In an article saying that Americans are not saving as much asthey were 20 years ago. They claim 20 years ago the average savingswas 20 percent of disposable income and predicted that it woulddrop to
If an editorial says that Americans are saving at loweramounts ie, 20 years ago the average savings rate was 20% ofdisposable income. The editorial predicted that thiswould drop to 5 percent in les
Assuming the oversimplified multiplier is correct, Supposing the GDP is currently $25,000 and themarginal propensity to consume is .50. If autonomous investment increases by $5,000, what will GDP be
Using the four components of the GDP, If GDP is $100 billion, consumption is $60 billion,investment is $30 billion, and net exports are -$5 billion,what is government spending in this economy
Suppose a second nation has the following data. Plot thePPC, and then determine which nation has the comparative advantagein which activity. Show whether the two nations can gain fromspecialization
A. Calculate the opportunity cost of an increase in the numberof hours spent studying in order to earn a 3.0 grade poingaverage(GPA) rather than a 2.0 GPA. B. Is the opportunity cost the same for a
Thereare large numbers of sports industries which are producingfootballs and they are competing with each other with respect toprice as well as quality. Suppose that the marginal cost ofproducing fo
Suppose a country has no public debt in year 1 but experiences a budget deficiet of $40 billion in year 2 , a budget deficiet of $ 20 Billion in year 3 a surplus of $10 billion in year 3 and a budge
A proposed material for covering the roof of a building will have an estimated life of 8 years and will cost 5.000$. A heavier grade of this roofing material will cost 1.400$ more but will have an e