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When a leading developing country defaults on its loan to foreigners, discuss (with the aid of loanable funds market diagram) why interest rates will rise on bonds issued by many other developing countries.
Define and explain the relationship between total utility, marginal utility, and the law of diminishing marginal utility. Describe how rational consumers maximize utility using the utility maximization rule.
Suppose the government increases education spending by $20 billion. Based on an MPC of 0.75, how much additional consumption will this increase cause? Show your work.
Stock returns and your retirement account: Suppose your retirement account has a balance today of $25000 and you are 20 years old. If you are invested in a diversified portfolio of stocks, you might hope that the historical return of about 6% continu..
q.consider the following cobb-douglas production function for the bus transportation system in a particular cityq
DHL prides itself on having its own staff of more than 300,000 people spread across the globe, instead of relying on local agents.
Describe the differences between shortages and scarcity. In answering this question you should think difference between the short run and the long run in economic analysis.
Assume that the economy's real GDP is growing. what will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over tiem? If the Fed changes the money supply to match the change in money..
Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. (Plays and movies are perfect substitutes with 1 to 3 ratio.) Draw her indifference curves. If plays tickets cost..
A corporation just issued a 10 year, zero coupon bonds having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?
If all firms, existing and potential new entrants, face decreasing industry costs in the long run under perfect competition, the industry supply curve will: Necessarily be upward sloping
Smith Co saw a reduction in quantity of widgets is sold, down to 900 units. What is cross elasticity of demand between two brands of widgets.
Suppose market demand and supply are given by Qd=100-2P and Qs=5+3p. If a price floor of $30 is set, what will be size of the resulting surplus?
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