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If the interest rate is 12%, should Pfizer invest in the development of the new drug? Why or why not?
Explain how a well-functioning financial system increases savings and investment spending, holding the budget balance and any capital flows fixed.
If the actual inflation rate is 7% over the next year, how does that affect Boris and Lynn? Who is better off?
Explain why equilibrium in the loanable funds market maximizes efficiency. How would you respond to a friend who claims that the government should eliminate?
How does the equilibrium interest rate change in response to government expenditure on the expanded pre-K programs? Explain.
Explain the effect on a company's stock price today of each of the following events, other things held constant.
You have won the state lottery. There are two ways in which you can receive your prize. How would you prefer to receive your prize?
If the marginal propensity to consume is 0.52, by how much will real GDP change in response?
To what extent did the movements in the stock market hurt or help consumer spending?
Explain how each of the following actions will affect the level of planned investment spending and unplanned inventory investment.
Plot the aggregate consumption function and planned aggregate spending. What is unplanned inventory investment when real GDP equals $600 billion?
Suppose policy makers attempt to rectify this by encouraging greater savings in the economy. What effect will their successful attempts have on real GDP?
Draw a diagram showing the effect of the price control on market for bread during this one-year period. Did the policy act as a price ceiling or a price floor?
Suppose that the stock market crashes and, as a result, people in Gotham City are poorer. What effect will the mayor's new policy have now?
Select 333241 Food Product Machinery. From which country do we import the most food product machinery?
What prediction does the Heckscher-Ohlin model make about the wages received by labor in China?
Draw the domestic demand and supply curves. What will the domestic price of oranges be after introduction of the quota?
For each argument, discuss whether it is a valid justification for trade protection of U.S. agricultural products.
In World Trade Organization (WTO) negotiations, if a country agrees to reduce trade barriers. Do you think that this terminology is appropriate?
Draw another supply and demand diagram to illustrate this new market equilibrium.
Which country has the absolute advantage in lumber production? How many footballs does the United States produce? How much lumber does Canada produce?
How does the current unemployment rate compare to the rate one month earlier? How does the current unemployment rate compare to the rate one year earlier?
Determine what the CPI was for the previous month. How did it change from the previous month? How does the CPI compare to the same month one year ago?
In 1798, Thomas Malthus's Essay on the Principle of Population was published. Why didn't Malthus's description apply to the world after 1800?
Why do we care about the size of the long-run growth rate of real GDP relative to the size of the growth rate of the population?