Inflation in the nation, A firm with a U-shaped average

Inflation in the nation

Assignment Help Business Economics

Reference no: EM136973

Q1. A nation demand for loan is r= 20- (0.5)i where r is the nominal interest rate. the supply of loans is r=2+i. if the real interest rate is equal to 3%, then what is the expected rate of inflation in the nation?

Q2. A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost. On which part of its average cost curve is the firm operating?

Q3. Suppose a third project will cost $20,000 today and yield a return of $2,500 a year indefinitely. What is the present value of the project? What is the present value if the interest rate increases to 20 percent?

Reference no: EM136973

Questions Cloud

What are the genotypes of the parents : A cross of black chicken (BB) with the white chicken (WW) produces all speckled offspring (BBWW). This type of inheritance is known as what.

Hiring and retaining the best managers : Coke could have followed the price per unit down, but it didn't. Total soft drink demand increased, and Pepsi took a larger share of the demand.

How much co2 will this free into the atmosphere in a year : Chlamydias and rekettsias were once classified as viruses because of their small size and obligate intracellular growth requirement. What are some of techniques can be used to illustrate that they are really bacteria.

Arguments for trade restrictions : Identify the causes of the crisis, the steps the private and public sector took to resolve it, and what leaders should do to keep it from happening again.

Inflation in the nation : A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.

Gap between real gdp and potential gdp : In which directions are they pushing or pulling the U.S. economy. Also, do you think the gap between real GDP and potential GDP will widen or narrow.

Price of elasticity of supply : Tthe price of elasticity of supply is of apartment is 0.50 use the demand and supply curve to show the initial equilibrium point a.

Amount of goods and services tax : If a sample of 110 artists was taken, find the average value above which only 15% would lie. Give your answer in dollars to the nearest dollar.

Carbonaceous chondrites must contain no d-amino acids : If relatively small carbonaceous chondrites from space were a significant source of Earth's original amino acids, then which two of these would have been most important in permitting their organic materials to survive impact with Earth.

User Account

All Pages