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Jim Duggan made an investment of $10,000 in a saving account 10 years ago. This account paid interest of 5½% for the first 4 years and 6½% interest for the remaining 6 years. The interest charges were compounded quarterly. How much is this investment worth now?
Explain how can rational thinking the above behaviors. How do your thoughts impact, if at all, your opinion of the theory.
Suppose that there are two goods in the economy, and the price of each good is equal to 1. When Alice has income of $10, She consumes 1 unit of good y and 9 units of good r.
The demand and marginal revenue curves faced by a firm in a purely competitive market. they different from those faced by a firm in oligopolistic competition.
Explain should they stay in business for three months or should they close down right now.
Given table of data comprising real GDP and its components over a number of years, compute compound annual percentage changes in real GDP (economic growth) and compute the shares in real GDP of consumption.
Assume that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy.
You are the holder of a variable-coupon bond that is convertible to a fixed-coupon bond. If you expect interest rates to rise, should you exercise your conversion option? Explain. What if you expect interest rates to fall?
ssume that a hypothetical economy with an MPC of 0.75is experiencing a severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $50 billion How large a tax cut would be needed to achieve th..
If a firm has created value is it also always able to capture that value How does a firm create value and then what must it be able to do to capture that value In your answer provide an example of a firm that has been able to create value.
What is the difference between supply-side and demand-side economics? How do the above concepts fit into these definitions? Which do you agree with most as a solution to stimulating growth, and why?
(a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale. (b) Does the production function exhibit diminishing returns If so, when does the law of diminishing returns begin to operate.
Suppose that you have utility as a function of income (I) given by the equation: \(U = \sqrt{501}\) Consider a lottery that provides a payoff of $0 with probability 0.75 and $200 with probability 0.25. What is your utility if you receive a sure..
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