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Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on this car loan.
Assume that a industry produces 200000 units a year and sells m all for $10 each. Furthermore, assume that marginal external damage of this product is $6 per unit. How many more units of this product will free market produce than is socially.
Refer to the following table. The externality created by the production of refrigerators was $100. However, once both the private and additional external costs were taken into consideration, the market price increased by only $50. If the external cos..
Is it practical to assume that people age 55 and older constitute one large consumer market? How can marketers segment this age subculture? What are some important variables to keep in mind when we tailor marketing strategies to older adults?
The EU is the biggest common market worldwide. Please name the most important facts that describe the size and importance of this market.
Suppose that long term interest rates in the economy were increasing due to strong economic growth and demand for loans in the world economy. Meanwhile suppose that the Fed was holding down its federal funds rate target. What would probably be happen..
Reflect on the notion of fiscal union within the European Union. Why is it becoming necessary? Can it be achieved quickly enough to avert financial disaster within the trading bloc?
Show that an increase in government spending that is productive in this fashion could increase welfare for the representative consumer.
Addressing inflation using Fiscal and Monetary Policy tools. Scenario -The US economy is currently experiencing high rates of inflation. You have Fiscal and Monetary policy tools available to address this problem: To attack the problem of inflation y..
The demand schedule for JK Rowling's book is Q=3000-100P. The cost of having the book typeset is $10,000 and then the cost of printing each copy is $4. How many copies should JK Rowling print?
Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 35 percent. ..
What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country’s long-term debt, what would it be and why?
The two economies are so far apart that they don't share ideas and each evolves as a separate roomer economy.
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