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In Keynes’s analysis of the speculative demand for money, what will happen to money demand if people suddenly decide that the normal level of the interest rate has declined? Why?
Suppose that technophiles are willing to pay $400 now for the latest iPhone, but only $300 if they have to wait a year then compute the optimal pricing scheme of the iPhone.
Assume there are two types of investments, business investments. There is a permanent increase in the nominal supply of money.
Show that equation (1) implies that per capita investment is also a constant fraction of per capita income. Which equation, which was not stated in the set up of this question, do you need to show this?
Compute the AE function and plot it in diagram. What is total autonomous expenditure? What is slope of the AE function?
Utilize the equation to give as much information as possible about the demand for potatoes.
Illustrate what do you think will happen to the price and quantity of DVD players if. The availability of good movies to play on DVD players increases.
In an attempt to curb the problem of unemployment and win the forthcoming elections the government of the republic of zambia has decided.explain the types and causes of inflation.
A study sponsored by the American Medical Association suggests that the absolute value of the own price elasticity for surgical procedures is smaller than that for the own price elasticity for office visits. Explain why this would be expected
What do these numbers tell you about the phase of the business cycle in the United States, Euro area, and Japan in 2008? What do these numbers tell us about the relative size of the natural unemployment rates in the United States, the Euro Area, an..
Some people advocate government funding of college scholarships as a way of creating a more egalitarian society. Others argue that scolarships help only those who are able to go to college. Do your answers to the preceding questions shed light on ..
Calculate the Consumer Price Index in each year and calculate the inflation rate from 2010 to 2011 and then from 2010 to 2013 using the calculated CPIs.
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.
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