Effects of monetary and fiscal policy
Problem: Explain the effects of monetary and fiscal policy on economic activity using both IS/LM and AS/AD models. Also explain the difference between the supply side and demand theories.
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Explain the effects of monetary and fiscal policy on economic activity using both IS/LM and AS/AD models. Also explain the difference between the supply side and demand theories.
During the audit of a closely held corporation the junior member of the audit team discovers an anomaly in the books which suggests that certain corporate officials may be laundering overseas money in the company's international sales operation.
Your college has agreed to give you a $10,000 tuition loan. As part of the agreement, you must repay $12,600 at the end of the 3-year period. What interest rate is the college charging?
Prepare a schedule reflecting an incremental analysis of this proposal. Indicate the effect the acceptance of this order might have on the company's income.
For each of the following, predict the effects on the equilibrium levels of aggregate output (Y) and the interest rate ( r ):
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