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Based on Romer 1986 model and Euler Equation, why the growth rate of consumption in this model depends positively on the interest rate?
Bank has the following balance sheet. Reserves = $760, Loans = $7,800, T-bills = $560, Deposits = $8,000, and Debt = $800. Reserve requirement is 8%. How much excess reserves the bank holds?
Illustrate what happens to money supply, interest rates and economy in general if Federal Reserve is a net seller of government bonds.
An airport is located on a tract of land owned by a housing developer. The developer would like to build houses but noise from the airport reduces the value of the land. The airport’s total profits are ΠA(x) = 48x − x^2 where x is the number of airpo..
Consider Albert Einstein's quote, "Sometimes one pays the most for things one gets for nothing," and the Russian proverb, "The only place to find free cheese is in a mousetrap." Do you agree with these statements? Why or why not? Keep in mind opportu..
Triggers are ethnocentric responses to differences and defensive reactions to ethnocentrism. Any number of things can serve as triggers, but they generally fall into the following categories: voice, appearance, attitude, and behavior. Please describe..
Environmental Evasion Collapse What Would You Do? Why is this happening to me, George Mackee wondered. Four years ago, George, along with his wife, Maria, with their two children, had moved from El Paso to Seguin, Texas, to take a management position..
Two manufacturing firm, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck o..
Suppose a customer is able to consume the following bundles of rice and beans when the initial price of rice(x) is $5 and the initial price of beans(y) is $10. This consumer's initial income is $100 dollar. Draw the budget contraint of the consumer.
q. eisler company consigned 80 freezers costing 500 each to company. the cost of shipping the freezers amounted to840
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. Delta will realize a p..
Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq, now assume that the first firm moves before the second firm. Compare the..
A sum of sufficient magnitude is to be invested now so that starting in 10 years from now an amount of $2500 per year can be paid in each of 8 succeeding years. The unexpended money remains invested at 6% compounded annually. How much must be allo..
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