2. According to Tobin's model of speculative money demand, an increase in de- fault risk on bonds increases the demand for money, which causes the LM curve to shift to the right.

Q: Assuming society’s mpc is constant so an aggregate of income of $3000 aggregate consumption would be

A: Aggregate consumption function is the combination of autonomous consumption and consumption…

Q: 2 The minimum wage is an example of price ceiling command economy rice floor. free market. a. b. а a…

A: The government imposes price limits in order to protect consumers' interests. These price…

Q: What is the Optimum level of the output for the firm? How do you know? Explain your answer. What is…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: for example) can be thought of as acts that have immediate gains but run the risk of long-run costs.…

A: We show that Committing a crime, such as burglary, is essentially a mirror image of an investment in…

Q: Method Units of Labor Units of Capital 1 50 10 2 20 40 3 10 70 A small company that…

A: The production process/cycle is characterized as the interaction in which the elements of…

Q: Which of the following liberalized free trade among Canada, the United States, and Mexico in the…

A: The transfer of commodities, services, money, and technological advancements between nations is…

Q: Hyundai USA has numerous robotic welders as well as robotic checkers with vision. One underbody…

A: Initial Cost = 1200000 Savings per year = 500000 Expenses = 120,000 7 year property class has…

Q: (a) What is the breakeven selling price per unit? (b) What is the selling price per unit assuming…

A: The break-even point is the one at which the revenues generated by the firm are equal to the costs…

Q: Write out the extensive form of a game between a farmer (playing in the first round) and nature…

A: Given that, Pay a cash rent = $1500 Price of Corn = $3500

Q: Econoville is a growing town on the outskirts of Toronto. It started out as a small village but the…

A: Given, Econville is growing with a limited market and there lies a huge scope of new opportunities…

Q: Which of the following signaled Mexico's declaration of 'economic independence'? O Lázaro Cárdenas'…

A: An economic independence refers to an economy that progresses without being dependent on others,…

Q: Which of the following is most likely to be a monopoly? local fast-food restaurant local electricity…

A: Monopoly is known as a market structure in which only one seller exists who has complete market…

Q: Question 3 Some reasons why resources could be allocated inefficiently by the market are negative…

A: Introduction  A positive externality is a benefit of producing or consuming a product. Economic…

Q: A perfectly competitive firm maximizes profit by producing 100 units at an average total cost of $12…

A: In a perfectly competitive market, the equibrium price is determined by the forces of demand and…

Q: France has absolute advantage in the production of ither grapes nor textiles. (A: grapes; B:…

A: A producer has an absolute advantage over its rivals when it can create a good or service in a…

Q: Comparative Advantage O goods and services that one country buy from other countries A country's…

A: Comparative advantage is the basis of international trade.

Q: Protectionists O people who favor trade barriers that protect domestic industries O people who favor…

A: Trade barriers are the trade restrictions imposed by the country. Tariff and quota are such…

Q: a.What was world health and safety like before the current system? What were the drivers to create a…

A: To manage the health care and safety of employees in the work environment it is of utmost importance…

Q: 1) At the start of the new year, Adriana finds out that the price of her economics textbook…

A: Income elasticity shows the responsiveness of change in demand to change in income. It is calculated…

Q: Floating Exchange Rate O occurs when the value of imported products exceeds the value of exported…

A: The rate of exchange at which one country's currency is exchanged for another country's currency is…

Q: 1. There are two types of individuals; low-risk individuals whose probability of an accident is 0.3,…

A: There are 2 types of consumers: Low risk: Income = $400 without accident  Income= $100 with an…

Q: A young engineer is considering establishing his own small company. An investment of P400,000 will…

A: A rate of return refers to the net gain or the loss of an investment over a certain time period…

Q: Explain the two causes of inflation

A: Inflation is the increase in the general price level of the economy.  It is not considered good for…

Q: Your company wants to purchase computerized milling equipment from XYZ, Inc. The contract being…

A: Present value considers the future value and uses a discount rate or the rate of interest that could…

Q: $10K b 1 2 $900 $1,000 3 $800 4 $700 $600 X O X= {10,000 - 1,000(P/A, 4%, 6) +100(P/G, 4%, 6)} (F/P,…

A: In a cash flow series the arithmetic gradient rises or falls by a constant amount. The cash flow…

Q: Foreign exchange rate O the price of one country's currency in terms of another country's currency O…

A: Foreign exchange rate refers to the rate at which foreign currencies are bought and sold.

Q: 2. A manager hires labour and rents capital equipment in a very competitive market. Currently, the…

A: In the case of 2 variable inputs, labor(L) and capital(K), the firm maximizes output for a given…

Q: Material-handling equipment used in the manufacture of grain products (MACRS-GDS 10-year property)…

A: Modified accelerated cost recovery system is the abbreviation for MACRS Depreciation. In the US, it…

Q: Stretch Problems Problem 4 Based on the graph below, explain what would happen to the optimal level…

A: For the above provided graph - Blue  curve which is downward sloping represents the marginal cost…

Q: 4. A multiproduct firm's cost function was recently estimated as C(Q₁, Q₂) = 75 -0.250102 +0.10…

A: C(Q1,Q2) = 75 - 0.25Q1Q2 + 0.1Q12 + 0.2Q22

Q: and 12. How are equilibrium quantity demanded dumine economy? Through traditions and customs b.…

A: Equilibrium is characterised as a state in which the quantity of the good demanded and the quantity…

Q: This question refers to the following graph below. Infant Deaths per 1,000 Live Births Germany South…

A: Infant mortality rate is the death of infant children per thousand .Children under the age of one…

Q: Good X IC₂ IC₁ Good Y

A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…

Q: Robin owns a horse stables and riding academy and gives riding lessons for children at “pony camp.”…

A: Total revenue is the amount that the seller earns by selling their product. The cost of producing an…

Q: 100 For the demand function q = D(x) = find the following. X a) The elasticity b) The elasticity at…

A:

Q: 4. If a bank with $500 in deposits is holding reserves of $60 when the reserve ratio is 10%, the…

A: Reserve ratio is the reciprocal value of money multiplier.

Q: What is the Federal Reserve and what is its role in Monetary Policy?

A: The basic goal of monetary policy is to stabilise the money supply across the economy and avoid…

Q: Question 7 Sherman Antitrust Act outlawed agreements in restraint of trade, including cartel…

A: The antitrust policy simply means the government regulation to curtail the exercise of monopoly…

Q: As part of the wave of “deregulation” of financial markets in the 1980s, banking laws were changed…

A: The interest rate payable on the deposit account by banks was restricted by law before the 1980…

Q: Which of the following is proof that international trade is beneficial? O the fact that different…

A: The exchange or trade of goods and services between various countries is referred to as…

Q: Year/Age (%) 1981 1989 1996 2007 2008 2009 2010 Children < 18 years 12.6 11.9 18.4 9.5 9.0 9.4 8.2…

A: According to the world bank organization, Poverty refers to hunger. Poverty refers to a lack of…

Q: ASUS manufactures 1,000,000 units of netbooks yearly. A new design or the product will reduce…

A: A company adopts the cost-benefit analysis t determine the benefits of a decision or adopting an…

Q: We are given the following information for UWI Land. At the start of the period, there are 334,250…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: for th below two machines and based on AW analysis which machine we should select? MARR=10%. Machine…

A: Machine A Machine B First Cost 25,433 100,000 Annual Cost 12,199 7000 Salvage Value 7,603 -…

Q: How much should you invest each month in order to have $700,000 if your rate of return is 3.6%…

A: A higher discount rate indicates a lower present value of the annuity while a lower discount rate…

Q: How can analysis of national competitiveness explain the competitive advantage an SME firm is…

A: Small and the mid sized enterprises or SMEs are referred to the businesses which can maintain…

Q: If a bank has $200,000 of checkable deposits, a required ratio of 20 percent, and it holds $80,000…

A:

Q: In the graph below, show, using a vertical line, an abatement level of 0.3 mg/l and highlight and…

A: Marginal abatement costs are the cost of removing each unit of pollution, marginal damages are the…

Q: person wants to invest in property and therefore wants to consider purchasing a $75.000 condominium…

A: We will include the cash necessary for operations, as well as the costs incurred, as well as the…

Q: The demand in market 1 is D₁ = 24 - P1₁ The supply in market 1 is S₁ = -2 + P₁ The demand in market…

A: Given function D1=24-P1 S1=-2+P1 D2=16-P2 S2=2+P2 Cost of transportation Pt=2