1. The equations below represent the Open Economy Model of Mankiw’s Chapter 5, which determines the endogenous variables Y, C, I, NX, and in terms of the exogenous variables K , L , G , and T . Suppose that the money demand function is [M/P]^d = 1000-100r where r is the interest rate in percent.? The money supply M is 1000 and the price level P is 2. What is the equilibrium interest rate? Assume that the price level is fixed. What happens to the equilibrium interest rate if the supply
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mismanagement caused Argentina’s 2001 crisis Summary: It is believed that the fiscal mismanagement which came from 1) fiscal indiscipline. 2) loose fiscal policy, caused Argentina’s 2001 crisis. Each of these two parts covered the problems of the country’s tax system, fiscal policy, currency policy and government management. The following contents will give more details. Fiscal indiscipline contributed to the crisis Fiscal indiscipline
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Term Paper On Alternative Economic Policies for India based on analysis of the Alternative Budget INTRODUCTION Attempt has been made not to draw a detailed picture of an alternate budget but to understand the macro outline of the budget based on alternative policies. With rising debt and interest burden there was a need for a change in fiscal policy change In the Indian economy. This paper shows the possibility of an alternative change to the IMF dictated budget adopted at that time. A comparison
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Unemployment and workfare Questions: 1: Last week the government announced who had won contracts for the work programme: there was shock when, out of 40 contracts worth between £3bn and £5bn, only two went to not-for-profit groups. Not so much "big society" as big Serco. The biggest winner – and a surprise – was Ingeus Deloitte, which won seven huge contracts amid acid observation that its CEO was a former director at the Department for Work and Pensions. Concern was expressed that Ingeus had underbid
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Patrick Fultz My roommate religiously wears a t-shirt depicting the slogan, “So Far, He Sucks.” Of course this garb relates to our current Commander in Chief, Barrack Obama. This is a debatable topic as it has always been for current presidents. However, this paper is directed towards his healthcare policy only. Obama’s health care bill has been a hot topic during his reign as President of the United States and has been met with much praise, as well as much contempt. While I deem myself a neutral
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Fiscal Policy and Social Security Policy During the 1990s Douglas W. Elmendorf Federal Reserve Board Jeffrey B. Liebman Harvard University and NBER David W. Wilcox Federal Reserve Board Revised July 2001 This paper was presented at a conference on “American Economic Policy in the 1990s” held June 27 to 30, 2001 at the John F. Kennedy School of Government, Harvard University. The views expressed in this paper are those of the authors and are not necessarily shared by any of the institutions with
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concern is that China’s debt does not take into account its weak local government finances, bad loans in its banking system, and the future costs of an aging population. This means that if China wishes to offer tax cuts and boost spending, they have less room than imagined. Nearly all tax revenue in China goes to the central government, so local governments such as provinces and townships rely on fiscal transfers from Beijing, as well as independent revenue sources such as land sales, which can be
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Tax Planning for salaried employees DON'T PAY MORE IN ORDER TO SAVE YOUR TAXES. Expert view for tax saving ........................................................................................................................................................ book I About this n India, most salaried people want to increase their personal savings and yearn to achieve financial freedom. But do they REALLY want to save money or are they too busy? Most people are not motivated enough
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maintenance of infrastructure can also create jobs for the people (Boushey & Ettlinger, 2011). The government can also indirectly create jobs through enticing the business persons to invest more. This can be achieved through giving incentives like tax cuts or reducing the cost of conducting business for the new enterprises. Constructing better infrastructure for the convenience of the manufacturing industries will reduce the cost of doing business. The funds
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Problem 1-1 a. Calculate the tax disadvantage to organize a U.S. business today as a corporation, as compared to a partnership, under the following conditions. Assume that all earnings will be paid out in cash dividends. Operating income (operating profit before taxes) will be $500,000 per year under either organizational form. The tax rate on corporate profits is 35% (Tc = 0.35), the average personal tax rate for the partners is also 35% (Tc=0.35), and the capital gain tax rate on dividend income is
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