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Suppose that a borrower and a lender agree on the nominal intrest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.
a) Is the real interest rate on this loan higher or lower than expected
b) Dose the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose?
c) Inflation during the 1970s was much higher than most people had expected when the decade began. How did this affect home-owners who obtained fixed-rate mortgages during the 1960's? How did it affect the banks that lent the money?
Elucidate how you would address each of the main problems in the organization.
Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
What is the importance of the World Trade Organization. What are the advantages/disadvantages of WTO member and those non-member. What are the five main operational aspects of a business.
Such retailers can sell as many copies of Vista they such as at the prevailing marketplace price of $200.
barbers who have turned farmers will drive down wage rate but will still be earning more than if y had remained barbers. Who benefits from technological progress in farming Farmers or barbers.
Suppose we only use labor in a production run. How do we determine the optimal level of labor input in the short run? In other words what condition must be met
For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.
terrorist attacks on the World Trade Center and the Pentagon affected short and/or long-term productivity in the United States. Explain your response and show any movements in the PPF.
If GDP is increasing by 3% every year Explain how long will it take GDP to double. Given the same conditions above, Explain how long will it take Every Capita GDP to double if the population grows at 2%.
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
Compute the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.
5 ways to develop strategic business and briefly discuss differentiate, customer-oriented, understand clients need, r-s platform and management, active marketing, etc
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