In the Keynesian theory of liquidity preference     money supply is related to interest rates     investment is equal to saving     interest rates equate the demand for and supply of goods and services     money demand is a function of income and interest rates     liquidity preference is a vertical line

Q: List and discuss at least three significant contributions a government can make toward a country's e...

A: Economic growth refers to an increase in the aggregate output that is produced in an economy. With t...

Q: Russia has raised the policy rate to 20%. Use a theory of exchange rate determination to explain the...

A: Exchange rate - The exchange tells us about the worth of the currency of one country in comparison t...

Q: 4. The total effect of a price change of a commodity is

A: The total effect of a change in a commodity's price is the substitution and income effects sum. 

Q: Which of the following can be a binomial random variable (select all that apply)? Number of heads in...

A: A binomial random variable counts how often a particular outcome occurs when there are a fixed numbe...

Q: Identify and describe the type of international business of Sushiro.

A: When a good is manufactured, cost analysis  takes place for producing that good and process of busin...

Q: Discuss how the interdependence of input markets for labor, capital, and land might affect supply, d...

A: The market for land, labor, and capital is known as factors market that influence the demand and sup...

Q: If the price level increases in the economy, A) The total spending in the economy will fall. B)The ...

A: When the price level increases in an economy then it implies a fall in the purchasing power. Goods a...

Q: Ily assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of...

A: In 1968, India established the Public Provident Fund (PPF) with the purpose of mobilizing little res...

Q: Which of the following would be a significant cause of income inequality in the United States?

A: To find : Cause of income inequality. 

Q: You are given the following information about an economy:                                           ...

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you....

Q: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. Ecu...

A: South Africa has a GDP of $10 billion (measured in U.S. dollars) and a population of 45 million. GDP...

Q: What is the fundamental assumption upon which the Law of Supply is based? A. The higher the demand f...

A: In a market, law of supply and law of demand are basedon some fundamental assumption about the norma...

Q: All of the following shift the demand for money curve EXCEPT O a. an improvement in financial techno...

A: Introduction Money demand is a part of money market. It has downward sloping. Money demand shows the...

Q: In the steady state of Solow's exogenous growth model, an increase in the savings rate ... A. increa...

A: The Solow Growth exogenous model of economic growth implies a change in the level of output due to a...

Q: Describe the difference between efficiency and effectiveness in government and give an example using...

A: Effectiveness vs Efficiency:- Effectiveness:- Effectiveness deals with the maximizing the desired r...

Q: 50. The present worth of of P40,000 in the first year and amounts o increasing by P3,000 per year th...

A:   PV=40,0001(1+0.13)1+43,0001(1+0.13)2+46,0001(1+0.13)3+49,0001(1+0.13)4+52,0001(1+0.13)5    =3539.2...

Q: With the advent of globalization and the WTO operations, which of this is happening or have happened...

A: The answer is - d. Free-Market Analysis

Q: Show a LRAC curve that exhibits only increasing returns to scale. In the same graph draw the corresp...

A: since In cost conditions, the long-run Average cost shome increasing returns to scàle only when the ...

Q: When the interest rate rises, bond values

A: GIVEN   the interest rate raise,bond values is

Q: QUESTION 12 The interest rate in Pakistan is 0.4, the exchange rate is 1.0 and market participants e...

A: Q 12 Its answer is d : 0.25 Interest rate of Pakistan = 0.4 Exchange rate of Pakistan = 1.0 Market p...

Q: Joe works for pay at a local newspaper 20 hours per week as a columnist, and spends 20 hours week wr...

A: From the statement, it is clear that Joe is working for 20 hours per week as a columnist with pay an...

Q: Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph be...

A: Answer: According to the above figure, if the supply curve shifts from AS to AS2 it means the firms...

Q: d used to run a newsstand, but he's out of the business now. Todd started by selling local wspapers ...

A: 18. According to the paragraph above, When Todd started his business, most of his costs were fixed. ...

Q: If MPC=0.75 (and there are no income taxes) and if government purchases fall by 45, then the IS curv...

A: MPC is the marginal propensity to consume which is the change in consumption spending due to change ...

Q: abor productivity on the ABC assembly line was 22 units per hour in 2008. In 2009, labor productivit...

A: Given: Labor productivity: 2008=22 units per hour 2009=21 units per hour

Q: Household spending on education Household spending on cars and furniture Household spending on real ...

A: answer calculate the Personal Income for this sample economy 

Q: ATC MC P5 PA AVC P2 P1 5 10 11 12 Quantity (per day) Price and costs (dollars)

A: In perfectly competitive market, there are many buyers and sellers. Goods produced are homogenous me...

Q: Please try to solve it in 20 minute How much money would you pay in interest if you borrowed $1,600 ...

A: Compound Interest - It is the interest which is charged over principal and also charged in addition ...

Q: The Keynesian Y/AE model and the IS/LM model differ in terms of their treatment of

A: GIVEN   The Keynesian Y/AE model and the IS/LM model differ in terms of their treatment of

Q: Which of the following scenarios would result in a decrease in Aggregate Demand? A) The congress pa...

A: Aggregate Demand is the sum of consumption expenditure, government spending, investment spending and...

Q: £/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 D= AR 10 MR 10 20 30 50 60 70 100 Units 40 80 90 Figure...

A: The profit maximization condition are as follows: 1- MR= MC ( Marginal revenue is equal to marginal ...

Q: 3. Discuss the long debate of economists whether there is a significant loss of well-being to societ...

A: Introduction Perfect competition and imperfect competition both are a part of market.  Perfect compe...

Q: 4. Explain the significant difference of the product distributed by a perfect competition which is h...

A:

Q: 5. The shape of rectangular hyperbola is made by

A: To find : Shape of rectangular hyperbola 

Q: According to Keynes’ Law... A) The total demand for products determine the level of gross domestic ...

A: According to Keynes’ Law.. The correct option is: option (A) The total demand for products determine...

Q: The Federal Reserve has announced that they are cutting interest rates for the third time this year....

A: When the Federal Reserve cuts rates, this refers to a decision by the FOMC  to reduce the federal fu...

Q: Activity 2 Statistics Reading The most major economic problem of our country today is the reduction ...

A: A positive economic growth rate means the production of goods and services is increasing. A negative...

Q: 2. Consider these three utility functions: U2 = u3 In a1 + In r2 Which of these functions can be sai...

A: The monotonic transformation of a utility function represents the same function as the utility funct...

Q: firms face downward-sloping demand curves in

A: There are two types of market, i.e., perfectly competitive and imperfectly competitive market.  Mono...

Q: Imagine the following case study where two different countries: Albania and Belize have remained sel...

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

Q: Suppose that the preferences of the consumer are represented by the following functions of utility: ...

A:

Q: Peter Scents has been given two competing offers for short-term financing. Both offers are for borro...

A: A loan can be taken as either a discount loan or an interest-payment loan where discount loan provid...

Q: 18. The human effort applied to the production of goods is called in economics

A: To find : What is human effort applied to production of good. 

Q: A bank is insolvent when   Question 24 options:   a)  its liabilities exceed its assets.   b)  ...

A: Answer: (a) Its liabilities exceed its assets.

Q: Because of the adverse selection problem,   Question 3 options:   a)  lenders will write debt con...

A: In a market, adverse selection refers to one of the causes of market failure due to unequal informat...

Q: Based on the data in the table and graph below, identify the equilibrium GDP:   Price Level Real G...

A: At equilibrium price, quantity demanded is equal to quantity supplied. At equilibrium level of incom...

Q: If the inflation rate is 3% per year, how many years will it take for the cost of an item to double,...

A: Given:Inflation Rate=3% per year

Q: When Tanner watches a movie on Netflix, their viewing is movie at the same time. in consumption beca...

A: Answer -

Q: Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal. T...

A: Calculating MC and MB: Marginal Benefit of the proposed new robots plan= Total benefits produced by ...

Q: Why does high compensation (wages) with little or no output from the worker is bad for the economy? ...

A: Wage: The term wage refers to the remuneration that is paid to workers against their work. In most c...