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Describe the implication of income differences for the basic monocentric city model? What are the key factors in the model that determine where lower and higher income households will live? Discuss this prediction in the U.S. context.
Explain briefly the system of system of the Balance of Payments Accounting for a country, including an explanation of the current account, the capital account, and the financial account.
Characteristic of a flexible exchange system. Interest rate expectations under interest rate parity, assume interest rate holds what happens to exchange rates. Explain how the environment of a multinational impacts repatriation of foreign profits.
A manufacturing company is considering purchasing a 10 HP electric motor which it estimates will run an average of 6 hours per day for 250 days per year. Past experience indicates that: (1) its annual cost for taxes and insurance averages 2.5% of fir..
q. assume as a rule of thumb one commonly assumes which the value of land equals the 14-fold of its annual rental
GM is opening a dealership in the Germany, they want to make sure they can make a rate of 20% rate of return that is promised by an alternative investment. The initial $600K investment in mechanic shop materials has an economic life of 4 years, and w..
bank prime loan rate imports of goods amp per capita income.briefly explain why the three variables are appropriate
If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?
A cigar seller notices that the demand for cigars is highly inelastic. In an attempt to increase revenue, he lowers cigar prices. Explain briefly whether he has made the right or wrong decision and why? For full credit you have to use a diagram to ma..
If you anticipate that the inflation rate is going to rise from three percent to 10 percent next year, you should?
Consider three households (i = 1, 2, 3) each with preferences ui(xi , G) = xi × G where xi is the consumption level of private goods by household i and G is the level of public good. Private good costs 1 and public good costs 10. Individuals have inc..
Describe the difference between nominal, effective and real interest and calculate what is owed after 5 years for the following example. 10% interest on $100 over the course of 5 years. Where relevant, the compounding period is 1 year. Inflation is 5..
Woody's utility function is U(C, R)= C- (12-R)^2, where C is his consumption and R is the amount of leisure he has per day. He has 16 hours a day to divide between work and leisure. He has an income of 20$ a day from non-labour sources. If Woody can ..
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