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Suppose we have the following real estate speculation scenario for a 1 year investment: Purchase price of house: $170,000 Equity: $120,000 Debt: $50,000 @10% interest Interest Payments: $5,000   What is the leverage ratio in this scenario? Suppose that real estate prices are increasing. All else being equal, what would happen if the leverage ratio increased?

Suppose we have the following information for 2010: Potential output: $8 trillion Actual output: $6 trillion Actual Deficit: $ 400 billion Tax Rate: 15%   What is the structural deficit in 2010? What could be causing the structural deficit?

Economists define potential income as the level of income that:

18. Which type of agent is effective in treating hypersensitivity?

4.7 Gebruik die homoniem van die onderstreepte woord in raampie 3 in ‘n sin. (1)

9. A patient with a fissured tongue is prone to accumulate bacterial plaque and debris. 

Suppose the target rate of unemployment is 4 percent but the actual rate of unemployment is 7 percent. Given this information, which of the following policies is the least appropriate according to the AS/AD model?

An increase in production costs in the AS/AD model is most likely to shift the:

Why is it difficult for policy makers to rely on the theoretical discussion of the money multiplier to target the money supply?

Refer to the graph. Suppose the economy is at point B. What is the most appropriate policy to return the economy to potential output: