Calculate the elasticity of demand for the demand curve p = 100 − 2q at each of the following price and quantity levels and determine the type of elasticity: a. p = 90 and q = 2

Use the analysis for the market for loanable funds diagram to illustrate and explain how the following government policy affects the economy’s savings and investment. Policy 1: Suppose the government starts with a balanced budget and then, because of a tax cut or spending increase, starts running a budget deficit. For your answer state and explain (i) which loanable funds curve would this policy affect. (ii) which way would the loanable funds' curve shift? (iii) what would be the impact on interest rates?

Answer rating: 100% (QA)

Part 1 Part 2 When the federal government runs a budget deficit fall in annual gover... View the full answer