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Your cousin Jeremy has asked you to bankroll his proposed business painting houses in the summer. He plans to operate the business for 5 years to pay his way through college. He needs $5000 to purchase an old pickup, some ladders, a paint sprayer, and some other equipment. He is promising to pay you $1500 at the end of each summer (for 5 years) in return. Calculate your annual rate of return.
Use a model of the money market to explain why changes in nominal or money GDP are associated with changes in interest rates.
The muffler on your car suddenly needs repair, also there are only two automobile repair shops in town.
During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections.
Explain why do changes in bank reserves resulting from open-market operations by the fed produce multiple changes in checkable deposits in the economy.
Quantity of money demanded is positively related to the value of money and negitively related to the price. Used goods are not included in the Calculation of GDP. Nominal variables are measured in physical units.
For any given level of output:
Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service - Describe the local economy's stage in the business cycle.
Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, illustrate what was the real interest rate you paid.
Show that the value of GDP at the point of spending balance is 6,000 billion. What proportion of investment is private saving? Government saving? Saving by the rest of the world?
Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always wiling to exchange three black shirts for one red shirt. What type of preferences is Carl exhibiting? Draw several indifference curves to illustrate C..
The Nation of Wiknam has 5 million residents whose only activities are producing and consuming fish. They produce fish in two ways. Each person who works on a fish farm raises 2 fish per day. Why do you suppose that X, the productivity of each fisher..
Export Development Canada (EDC) provides insurance to Canadian exporters for their accounts receivable from foreign buyers. If EDC charges an insurance premium that reflects the average level of risk of the exporting firms, it is only the most risky ..
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