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Briefly explain the loanable funds theory of interest rate determination. How would the following situations affect the equilibrium interest rate in the loanable funds market?
(a) The states agree to abolish sales taxes.
(b) The government reduces the budget deficit.
(c) Technological improvements are made to increase expected rates of return.
Tom earns $15 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 20 percent tax rate and pays $4 per hour in child care expenses for each hour he works. For all hours Tom works up to his..
Explain demand schedule and demand curve, and how they are related? Why does the demand curve slope downward?
Which market model appears to best explain the behavior: Chinese cooking is the most popular food in America that isn't dominated by big national chains. Chinese food is typically cooked in a wok that requires high heat and a special stove. Small mom..
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
Illustrate what price should you charge in order to maximize revenues from the sales of the Highlander. Please put this into Excel so I can see the formulas/calculations.
Time to failure distribution of a computer memory chip follows Normal Distribution with mean 9000 hours and standard deviation 2000 hours. Find the reliability of this chip for a mission of 8000 hours?
Illustrate what is the demand schedule for Belgium cocoa beans now which U.S. consumers can also buy them.
What are the possible sources of ingredients information? Describe how each of the sources will help you in getting the needed information for project ingredients.
Farmer Bogus is selling his product in a purely competitive market. His output is 600 bushels which sell for $2 per bushel. At this level of output, marginal cost is $2, average total cost is $7, and average variable cost is $6. Farmer Bogus should p..
Borrowing in the form of debt is riskier than borrowing in the form of equity. Explain why this is true.
You are the manager of a 24-hour copy shop that is closed on Sundays. You lease a building for $2,000 per month and hire three employees who each work eight-hour shifts at a wage of $10.00 per hour (each works a total of 40 hours per week). Are there..
Assuming that the price of fuel is $5.00/G and is increasing at a rate of 4%/year while the discount rate is 6% calculate the equivalent level zed price over 20 years
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