If households
If households become more willing to hold less cash and more stocks or bonds, the
When speculators are right, their actions: (1) Cause already depressed prices to drop/fall further. (2) Raise the risks to another firm of doing business. (3) Prevent price refuses from their peaks. (4) Reduce both the phase of prices and their volatility across time.
How prices allocate resources?
In the figure shown below, line T1 depicts a tax system which is: (1) Regressive. (2) Progressive. (3) Proportional. (4) Unbiased. (5) Recessive.
State the Law of supply and explain the factors that affecting supply of commodity
Fiscal policy measures used for achieving full-employment level of output and price include increase in the government expenditure and cut in tax rates. A cut in tax rates eliminates only the adverse effect of high tax rates, whereas an increase in government expendit
What is the relationship among interest rate and bond prices? Is there any difference among T-Bills versus Corporate bonds in reaching your assessment? Whenever the stock market falls, where do you assume that most investor place their money and why?<
Most economists believe such that people increase an activity when they perceive the expected additional benefits as exceeding the expected extra cost, but decrease their level of an activity whenever they believe the benefits from the last few units of the activity a
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
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