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The effectiveness of any stimulus program depends on:
A) the nature of the tax only
B) the size of the tax and spending multiplier
C) the nature of the tax and tax multiplaier
D) the income group targeted
E) the marginal propensity t consume only
Business Economics, Economics
Example of a utility function which doesn't have a solution to the consumer utility maximization problem for strictly positive prices p >> 0 and income y > 0.
Suppose Oregon proposes indexing the minimum wage to inflation. Describe the substitution and scale effects you anticipate with this policy? (In your response, assume that the minimum wage is an effective price floor and ...
The increase in prescription drugs cost, increases the drug companies profit. Should there be restrictions to lower consumer cost and how much of their profit should be reinvested into research and development?
Assume P = 65 - 2Q. The cost per additional unit (MC) is zero for the first five units, and then $5 per unit after that. There are fixed costs of $50. Once the optimal level of output is determined, how much profit does ...
Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $57.50. The firm expects to pay a $3.40 dividend at the end of 2013. The dividends for the past 5 years are shown ...
Use the information on the market for bicycles to answer the following questions. Demand: P = -125*Q + 540; Supply: P = 150*Q + 210, where P is the price of bicycle and Q is the quantity demanded or supplied of bicycle. ...
The label on a can of sardines indicates the can contains 10 sardines. You open up 100 cans and record the number of fish in each can. You find the sample average is 9.5 and sample standard deviation is 1. Calculate and ...
A manufacturer claims that their calculators are 6.800 inches long. A random sample of 39 of their calculators finds they have a mean of 6.812 inches with a standard deviation of 0.03 inches. At α=0.08, can you support t ...
INC = 40966.1 + 2.796 POP' sample size = 400 (se) (545.8) (.2796); R 2 = .2468 1. Where INC is the income in millions of dollars and POP the population in millions of people. Provide an ...
What is the types of cost: fixed, variable, and marginal in economics, and methods that market power alters the relationship between a firm's costs and the price at which it sells its product?
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
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Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As