If a government defaults on the value of its debt by 3/4, this is the same as imposing a ____ tax on interest and repayment of the principal.
I borrow 100 euros from you and promise to pay you back next year the principal and 10%. That means I owe you 110 euros next year. I now unilaterally declare that I will only honour 25 euros of debt to you. Next period I pay you 27.5 euros [25 + 1/4(10)]. That is the same amount as though announcing to you next period that I would tax your 110 euros 75% (i.e., you keep only .25*110=27.5)
If indirect taxes are subtracted and subsidies are added to Net Domestic Product at market price we get
Consider the following set of data:
{23.32 32.33 32.88 28.98 33.16 26.33 29.88 32.69 18.98 21.23 26.66 29.89}
For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price intersects the
New loans made = 1000. Fractional reserve ratio is 1/3, by how much deposits will grow?
The theory of comparative advantage in a two−country, two−commodity world can only work if
The theory of purchasing power parity says that .
Consider the matching-pennies game:
Let p= probabi...
A society in which there was garbage collection problem. But there was voluntary problem of payment so some people would participate and some wouldn’t...
Multicollinearity causes
Law of diminishing returns only applies to cases where