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Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or loss?
Suppose that currency in circulation is $500 billion, the amount of checkable deposits is $1,000 billion, excess reserves are $150 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the monetary base, th..
What is the elasticity of its demand with respect to advertising? Now suppose the theater increases the number of its ads to 250. Should the theater increase its price following this ad campaign? Explain.
Discuss the new equilibrium price also quantity which result from these changes. Can you exhibit some of these changes graphically.
Basically, speculators borrowed pesos also after that sold pesos for dollars in the open marketplace.
The environment and healthcare are very important aspects of our lives, as discussed in your textbook. However, it is still unclear whether corporations should focus on these as rights or as privileges.
The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
Compute the price elasticity of demand when price changes from $100 to $80 per pair using the average formular.
Candice can make 5 units of food per day if she devotes all of her time to food production. She can make 10 units of clothing if she spends the whole day at clothing production. Now suppose a trading ship visits the island each day and offers to buy ..
If the labor force of 150 million people is growing by 1.4 percent per year, how many new jobs have to be created each month to keep unemployment from increasing?
From the scenario, identify the possible illegal or unethical activities activities in which the print shop boss plans to engage in, and identify the consequences on society from an economic point of view.
If there are two firms in the market, what are their profits after taking into account the entry cost?
Coke also Pepsi have their market dominance for nearly a century. General Motors also Ford have been hard hit by competition.
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