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The Island nation of Macadamia recently experienced an 800 percent jump in tourism, Increasing Income throughout the Island. Suppose the Macadamia money market was in equilibrium prior to the rise In tourism. What Impact will the Increase In Income have on the equilibrium Interest rate in Macadamia, assuming no change In the supply of money? What will the Macadamia Central Bank have to do to keep the Increase In Income from Impacting the interest rate?
Suppose you are to specify a short-run total variable cost (STVC) function for a nursing home. Please list the independent variables (up to 5) and explain why they are included. In addition, define the impact of each independent variable on the STVC.
A student completes his degree and works for a wage rate w. He receives some money from his parents every month to pay for student loans. If there is an increase in his wages (from w1 to w2) then what is the immediate effect on his labor supply? Assu..
What are 2 strengths of the Consumer Expenditure Survey of The Bureau of Labor Statistics? Describe how the Consumer Expenditure Survey might help business research. Explain what was surprising to learn about Consumer Expenditure Survey.
Suppose that in a day a worker in the United States can produce 10 bushels of corn or 2 shirts. In Russia a worker can produce 9 bushels of corn or 3 shirts in one day. Which of the following would benefit both the United States and Russia if trade o..
Your business is expected to generate a $40,000 profit at the end of year 1, and profit will increase by 10% per year through year 10. If you can earn 5% annual interest compounded annually, what is the present value of all your profits over the next..
When a U.S. corporation sends a dividend check to a stockholder residing in Ireland, the transaction is recorded as a, All of the following would be recorded in the current account except
A firm's production function is qi = 2Li + 10Ki. Assume both variables can be adjusted, even in the short run (for instance, making an item by hand versus using a machine to do so). What is the firm's cost function, if w=$15, and r = $100?
Suppose that both firms decide to collude (form one firm) and maximize profits as one entity. What is going to be the overall production level they choose and the profit they make, respectively
Patents allow a company to have a monopoly for a period of time. Monopolies result in lower quantity supplied and higher prices to consumers. Do you think companies should be allowed to obtain a patent on a product or not?
The Wellness Center is an organization providing help to distressed students on campus during the two weeks exam period at the end of every semester. You’ve been hired as a business consultant to help the Center develop a hiring policy so that it can..
Caviar and champagne are complements. Recently pollution has been a problem in the Volga River, where much of the world’s caviar originates. The sturgeon that live in these waters are laying fewer eggs than before. Show graphically and explain the ef..
In an economy, when income increases from $400 billion to $500 billion, consumption expenditure changes from $420 billion to $500 billion. Calculate the marginal propensity to consume, the change in saving, and the marginal propensity to save.
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