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1answer
32 views

Macroeconomics- money supply LM model [closed]

why does an increase in money supply , lower the interest rate and shift the LM curve down.?
-1
votes
3answers
104 views

Why does a strong dollar make imported goods cheaper?

I'm having a hard time visualizing why a strong dollar would make an imported good cheaper? If I buy an ounce of gold in the US for \$1,353.70 (todays rate) and I buy an ounce of gold in Europe, ...
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votes
1answer
75 views

How did economics become a “science”, an academic field?

How did economics become a "science", an academic field? Because I think of it as a soft science and thus in order to be considered a science it would need to be able to reply to the hard sciences? ...
-1
votes
1answer
56 views

For any given non-null game, is there always a finite amount of Nash equilibria? [closed]

Let's say I'm given a matrix ixj with n games, is there a finite amount of Nash equilibria for those games?
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votes
1answer
29 views

Surveys which capture income of individuals and other details

Please provide list of surveys which capture income of individuals, income determinants like education, age, work experience, field of work etc and, details about his family particularly number of ...
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votes
1answer
66 views

Is HIV An Economic Positive In Light of Human Overpopulation? [closed]

A few economists say that the human population is too high and if it continues to grow, may become too large for our planet to sustain it. While others can debate whether this is true or not, let's ...
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votes
2answers
99 views

Is Behavioural Economics Thymological, or does any branch or scholar concern itself with Thymology?

[Thymology] is what a man knows about the way in which people value different conditions, about their wishes and desires and their plans to realize these wishes and desires. It is the knowledge of ...
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votes
2answers
377 views

How to incorporate I parameter in GRETL application for ARIMA model? [closed]

How to incorporate I parameter in GRETL application for ARIMA model? Able to incorporate parameter AR and MA but not sure how to incoporate the I parameter?
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votes
1answer
234 views

Is the Federal Reserve even necessary? [closed]

A friend of mine told me that the Federal Reserve bank is the most evil thing in the world. Things like we can't print our own money and how this debt based fiat currency will destroy everything. ...
-1
votes
1answer
37 views

What does this sentence (from Galbraith) mean?

In Galbraith's Economics in perspective. A critical history (a spanish edition, bear that in mind), by chapter 2 the author says: The conservatives, in a non-socialist economy, proclaim the right ...
-1
votes
1answer
34 views

Why'd the lender suffer the collateral haircut, not the borrower?

In the quote below, why'd Steve offer $10.5, when your Air Jordans are worth \$11? Why wouldn't Steve (the lender) assign the collateral haircut to you, and require you to pay him \$11 + risk premium? ...
-1
votes
1answer
42 views

Would a zero-growth economy with zero-growth population still have the same GDP?

If a country was to turn to a steady-state economy (or circular economy) where there is neither economic nor population growth with time, and there is no natural resources being added to the system ...
-1
votes
1answer
28 views

Economic move from agricultural to manufacture to service in ?what after service sector?

is there anything after service sector .in oecd nation most of employment in service sector.is there anything like post service world.
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votes
1answer
23 views

How to read nash equilibrium from a normal form?

For example, on the section with the title "sequential games in normal form" of this wikipedia page, there is a table with all its SPNE and nash equilibrium labelled. How are the NEs obtained? It ...
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votes
1answer
54 views

How to prove the relationship between the expected value of a lottery and its certainty equivalent?

Utility function $u(x)$ is monotonic. I want to prove that $u(x)$ exhibits risk aversion if and only if for all lottery $F$: $E(x) \geq CE(F,u)$ (CE is certainty equivalent). (Definition of $CE$: the ...
-1
votes
1answer
49 views

Does 0% interest rate mean the minimum value of a currency?

I would like to know if there are other factors that can devalue a currency. I think the effect of the negative interest rates will not be much greater than the 0% interest rate because simply a very ...
-1
votes
1answer
54 views

Consequences of removing hard currency [closed]

If an appropriate electronic system were implemented governments would know how much money there is in circulation, who has it and if some illegal transaction has been done. This measure could help ...
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votes
2answers
163 views

Cobb Douglas, Budget Line, Demand function question

use the general form of the Cobb Douglas utility function $U(x,y)= (x^a)(y^b)$ and the budget constraint in the form $B=p_{x}X + p_{y}Y$ to find the demand functions for good x and good y. Is this ...
-1
votes
1answer
23 views

Production technology of $y=2x$

I have a given product $y$ that is produced by the input $x$ in the following relation: $2x=y$. In our example, we are given the unit price of $x$ is $16$. Find the unit cost of $y$. The answer is $8$....
-1
votes
1answer
315 views

The difference between a Nash equilibrium and Bayesian Nash equilibrium [closed]

What is the basic difference between Nash equilibrium and Bayesian equilibrium?
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votes
4answers
46 views

why is it always said that a CAD must be financed by borrowing from foreign countries

a current account deficit (CAD) means you have money leaking out of your country and going to ROW (rest of world). i see here (https://www.imf.org/external/region/tlm/rr/pdf/fpp5.pdf) that it can be '...
-1
votes
1answer
28 views

Price discrimination question

For this question the answer is b which is the TR of group 2. If price is the same, my question is why isn't the demand function of group 1 considered? Why is the TR of group 1 omitted?
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votes
1answer
64 views

How do people check or trust that central bank is not cheating? [closed]

How people can be sure that somebody, cooperating with central bank (or working in it), is not creating money in digital or paper form for themself, so that nobody else notices it?
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votes
2answers
80 views

SMD and Lucas critique

One of the consequences of Lucas' critique is that models must be microfounded. On the other side, Sonnenschein-Mantel-Debreu (SMD) theorem claims that microfoundation doesn't have any repercussion on ...
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votes
1answer
55 views

Is truth cheap, and falsehood expensive and volatile? [closed]

Question: In a scenario where data is bought and sold in a double-auction market, will the trading price and volatility of a given piece of data become inversely proportional to its accuracy over ...
-1
votes
1answer
33 views

Here's a question about the solow model [closed]

At first, I was confused by how y keeps increasing after depreciation exceeds savings, then I finally found what was truly bothering me. The fact that when depreciation exceeds savings, capital per ...
-1
votes
1answer
23 views

Inventory based question [closed]

"If a firm produces 1000 shirts (finished products), expecting to keep an inventory of 100 shirts at the end of the year." Here Why a firm keep an inventory of 100 shirts ? What is the need of it? ...
-1
votes
1answer
32 views

Minimum wage divided by cost of living?

Is there some commonly known indicator that is defined as: Minimum wage divided by cost of living? I mean, I could call it that way, but perhaps people already have this indicator with a certain ...
-1
votes
2answers
110 views

why isnt private sector savings defined as $S=Y-T-C-I$?

why isnt private sector savings defined as $S=Y-T-C-I$ ? afterall, savings is the money you have left over after you net off from your income ALL of what you have paid out. $Y, T , C$ And $I$ are the ...
-1
votes
1answer
55 views

A question about a derivation in Gali's Monetary Policy book [closed]

In Chapter 3 of Gali's famous Monetary Policy book, he measures the effects of a monetary policy shock. The interest rate rule is: Then a shock $v_t > 0$ occurs. He proceeds to measure how this ...
-1
votes
1answer
23 views

equality between 2 operations using mean [closed]

why when we do the following operation mean (10 ,20,30)= 20 is different from (mean(10,20)+30)/2=22,5 there are no equality between the 2 operations using mean ? why? thanks a lot in advance for ...
-1
votes
1answer
36 views

How does “Survival of the Fittest” result in Rosetta Stone's economic success?

I would briefly comment that Rosetta Stone has a terrible reputation among language lovers (see sample review about why most people can't learn like they did as a child), and some language lovers ...
-1
votes
2answers
437 views

How inflationary is progressive taxation?

Compared with, say minimum wage increases, how inflationary is progressive taxation?
-1
votes
1answer
56 views

Question on money supply related to new crypto project

Following questions are related to a crypto project I am working on and proper answers are of utmost importance to this concept's development. I unfortunately lack expert knowledge about money supply ...
-1
votes
1answer
247 views

Command and control policy approach graph

I'm unsure why a command and control policy approach to pollution will still have a dead weight loss? What happens with it/ or what does the government do about it if anything?
-1
votes
1answer
328 views

Question on oligopoly.

Consider an oligopoly between two identical firms producing a homogenous good with constant marginal cost where firms face linear market demand. $B_i(q_j)$ denotes firm i’s best response given the ...
-1
votes
1answer
66 views

how does the USA maintain the value of it currency in light of $800 billion trade deficits

In light of its Reserve currency status, How does the USA maintain the value of it currency in light of $\$800$ billion trade deficits that have accumulated to over $\$12$ trillion as pointed out by ...
-1
votes
1answer
73 views

How is infant mortality rate an indicator of living standards?

My textbook says, "Some of the best indicators of living standards are the average life expectancies and infant mortality rates already mentioned." How does babies not dying within their first year ...
-1
votes
1answer
206 views

Unemployment. What is the source of income?

In USA, more than 1 in 5 persons in working age are unemployed (that includes people looking for jobs, and also the ones not looking for jobs, so is not just the officially unemployed population). ...
-1
votes
1answer
307 views

price floor and price ceiling

I am studying basics of economics. I don't understand why a maximum price should be set below equilibrium price and minimum should be above. shouldn't it be the other way round?
-1
votes
1answer
333 views

Setup and solve utility maximization

A consumer wants to maximize his utility function $U(X_1,X_2)=Min(X_1,X_2)$. The price of $X_1$ is 2 and the price of $X_2$ is 4 and his income is 40. Setup the utility maximization problem and solve ...
-1
votes
1answer
93 views

Capital Asset Pricing Model Variation [closed]

Usually for CAPM we have: $$E(R_i)-\gamma=\frac{cov(R_i,R_m)}{var(R_m)}\times E(R_m-\gamma)$$ We know that $$\beta=\frac{cov(R_i,R_m)}{var(R_m)}$$ When can we replace $\beta$ with $\left(\frac{E(...
-1
votes
1answer
83 views

The difference between making money by profit and by earning it [closed]

Suppose there were no taxes (which only makes things more complicated) and suppose I ask ten people if they want to get money by cleaning up houses for 8 euros per hour. They agree. Now I on my turn ...
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votes
2answers
4k views

How do you determine if the production function has decreasing returns to scale?

How do you determine this for the production function $f(k,l) = k^{1.4}l^{0.5}$ ? So far, I have found the marginal product of both labour and capital however, the marginal product of labour is ...
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votes
1answer
46 views

What is the maximal theoretically possible wage increase here and now (ceteris paribus)? [closed]

Labour unions are pushing for wage increase but what is maximal theoretically possible wage increase here and now - without restructuring production, processes and without introduction of new ...
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votes
2answers
312 views

Budget constraint with leisure and consumption

I am given the following utility function: $u(x_{1}, x_{2})=x_{1}^2x_{2}$ where $x_{1}$ represents leisure and $x_{2}$ represents consumption. I am also given the budget constraint with the price of ...
-1
votes
1answer
143 views

Does the utility function U(X, Y) = 12x^0.2 y^0.8 represent homothetic preferences? [closed]

Does the utility function U(X, Y) = 12x^0.2 y^0.8 represent homothetic preferences? I was given this question but I have no idea how to work it out. I understand what homothetic preferences are in ...
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votes
1answer
147 views

Monetization of everything, where does it end?

The newest trend in global finance is elite monetization, meaning monetization of all elite assets such as top corporations and municipalities. Central banks are buying the stocks and bonds of elite ...
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votes
1answer
7k views

Calculate deadweight loss from cost and inverse demand function in monopoly [closed]

Consider a monopolist with inverse demand p = 200 - 2*q. The firm's total cost function is C(q) = 100 + 20*q. What is the deadweight loss of monopoly? To my understading, since we don't have any ...
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votes
1answer
52 views

The difference between profit and earning something

Suppose I search some elderly people who are in need of domestic care. I find 100 of them and them to pay me 15 dollars per hour. Then I find 100 people who will do the job for 10 dollars per hour. ...

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