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If an autonomous decrease yields a new PAE expression, PAE = 195 + 0.6Y, find equilibrium and graph it on a Keynesian cross diagram and find the multipler. Please explain.
NPV and IRR: Under which circumstances can the NPV and IRR calculations lead to conflicting results? Differences: What is the major reason for the difference? Preferable Metho
Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessaril
There are two choices for replacing a punch press. The basic model has a useful life of 8 years while the deluxe model has a useful life of 12 years. Whats the most appropri
Assume that you require a 15% return on stocks. Compute the price of a stock that will pay a $1 dividend next year and is expected to sell for $20 in a year’s time. If your “p
In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the sa
The price of jeans in a perfectly competitive market is NOW $13. Costs are STILL as follows: Quantity 0 1 2 3 4 5 6 7 8 9 10 Total Cost 10 17 26 37 50 65 82 101 122 145 170 1.
What are the main elements of Raymond Vernon’s product life cycle theory of international trade and investment? Is Vernon’s theory still relevant in the 2010s?
Suppose that since some base year, the price index (or GDP deflator) has increased from 100 to 125. During the same time period, NOMINAL GDP has increased from $500 billion to
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