Numerade

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Jerelyn Nevil

Numerade educator

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will Group of answer choices

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Danielle Fairburn

Numerade educator

The velocity of money is constant. Real GDP this year is $21 trillion, and real GDP next year will be $21.4 trillion. M1 this year is $4 trillion, and M1 next year will be $4.95 trillion. What will the inflation rate be? If your answer is something like 5.2%, just write 0.052. Give your answer to three decimals.

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INSTANT ANSWER

Scenario 1: Individual Retirement Accounts (IRAs) allow workers to shelter a portion of their income from taxation. Suppose the maximum annual contribution to accounts of this type is $6,000 per person. Now suppose there is a decrease in the maximum contribution, from $6,000 to $4,000 per year. Would this change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to fall or rise? Would the level of investment spending to either increase or decrease? Scenario 2: An investment tax credit effectively lowers the tax bill of any firm that purchases new capital within some relevant time period. Suppose the government implements a new investment tax credit. Would The implementation of the new tax credit causes the interest rate to fall or rise? and the level of saving to either fall or rise? Scenario 3: Initially, the government's budget is balanced; then the government significantly increases spending on national defense without changing taxes. Would this change in spending causes the government to run a budget deficit or surplus?Would this this increase or decrease national saving? This causes the interest rate to fall or rise? Which will in turn either increase or crowding out the level of investment spending.

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T. L.

Numerade educator

Production Possibilities Corn (Bushels) Rye (Bushels) 2,500 0 2,000 700 1,500 1,200 1,000 1,600 500 1,900 0 2,100 Refer to Table 2-3. Which of the following combinations of corn and rye is not currently attainable but would be attainable if there was an improvement in overall production technology?

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Breanna Ollech

Numerade educator

The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2015. Year Cereal Milk Price (Dollars per box) Quantity (Boxes of cereal) Price (Dollars per gallon) Quantity (Gallons) 2015 4.00 100 1.50 180 2016 4.00 120 2.00 200 2017 5.00 150 2.50 200 2018 6.00 180 3.50 240 Refer to Table 23-4. This country's inflation rate from 2016 to 2017 wa

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T. L.

Numerade educator

There are only two countries in the world. Consider the following data on England and France: Hours to Make One Unit Good A Good B Good C Good D England 10 20 30 40 France 5.6 19 31 35 If the wage in England is 10, and the wage in France is also 10, what is the world price of Good A? Just write a whole number for your answer. (Hint: think about which country is the low-cost producer in each market.)

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T. L.

Numerade educator

A young person has very particular tastes: she always has one luxury pizza and a six-pack of Lacroix water, every day, no matter what. The six-pack of Lacroix always costs $5, and the pizza usually costs $15. She lives on a weekly food budget of $140. If the price of pizza suddenly rises to 17.8, by how much will her welfare change? If the answer is that it will go down by 10.5%, then just write -0.105. Do not use a percent sign. Use three decimals in your answer. [Hint: welfare is the number of days of nourishment that she can afford with her weekly budget. It is possible that she can afford a fractional number of days of nourishment, such as 6.23]

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Abby A.