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suppose c=150+0.8(Y-t), T=100+0.1Y, G=300 and I= 210-100r derive the equation of IS curve and find out its slope. Suppose G changes by 5 units how much will the IS shift.
A business firms sells a good at the price of Rs 450.The firm has decided to reduce the price of good to Rs 350.Consequently, the quantity demanded for the good rose from 25,000 units to 35,000 units. Calculate the price elasticity of demand.

After winning lottery ticket. Diana is expecting to receive amount of Rs. 100,000 each year for the next 10 years. As an alternate, she can avail option of an immediate payment of Rs.1,000,000. (assuming immediate payment will subject to levied of tax of 10% deduction at source)

a) Which alternative should she pick if the interest rate is 6 %?


Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in 10 year long-term debt instruments issued by AAA rate Commercial bank. The broker explains that these bonds are entitled to the principal and interest payments but not backed by any security or pool of assets.

Requirements:

List down any four questions you would ask your broker to assess the risk of this investment opportunity?


You
Which other government agency or department will work closely with FED to ensure the US’s economy functions well
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Suppose you are told that electronic cigarettes cause health problems such as depression and problems with arteries. You also are told that electronic cigarettes do NOT produce second-hand smoke, meaning that e-smoking (called “vaping”) by one person does not harm a person standing nearby. How might economists respond?

a.
A standard welfare economist would say that e-smoking imposes an externality if health insurance is pooled and premiums are shared.

b.
A standard welfare economist would say that e-smoking does not increase social costs, unless having health insurance makes people more likely to use electronic cigarettes.

c.
A behavioral economics would ask if people who use e-cigarettes become addicted.

d.
All of the above.
Suppose we deposit $565 worth of currency into the bank. Banks make as many loans as possible, people hold no additional currency, and the reserve ratio is 15%. As a result of the loan process, what is the value of total deposits in the banking system? Enter a whole number with no dollar sign. Round to the nearest whole number.
Suppose the demand equation for computers by teetan ltd for the year 2017 is given by Qd=1200-P and the supply equation is given by Q=120+3P. Find equilibrium price and analyse what would be the excess demand or supply if price changes to rs 400 and rs 120
What is the first step in the federal budget process?

a. Congress debates and compromises on budget
b. executive branch creates budget
c. federal agencies propose spending
d. President signs or vetoes budget
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