Answer: The statement is <u>TRUE.</u>
Explanation: The theory of purchasing-power parity is an economic theory that tries to calculate the exchange rate between the currencies of two countries necessary so that the same basket of goods and services can be purchased in the currency of each one, that is, so that the purchasing power (or purchasing power) ) of both currencies is equivalent.
I'm pretty sure both the unemployment rate and the bankruptcy rate would be higher.
Answer:
changes in private savings offset any changes in the government deficit
Explanation:
Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.
In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.
Answer and Explanation:
(a)
Variables are given as follows
Total number of cars, C1
Total number of trucks, T1
(b)
Our aim is to maximize the total profit of Green Vehicle Inc.
Max z = 300T1 + 220T1
(c)
In this question, we have limitations, which are
0.025T1 + 0.017C1 ≤ 1
0.020T1 + 0.020C1 ≤ 1
hence attached below are the excel solutions to the problem
