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Assume that investments is highly insensitvie to the interest rate. Explain what effects are on interest and income of an increase in government expenditure (G). Which compent(S) of aggregrate demand are crowded out (i.e., reduce)? Use IS-LM diagram to support your answer.
Over what range of wealth is this function potentially appropriate to analyze your financial choices under risk? Over this range of wealth, what is your attitude toward risk? What is your Arrow-Pratt measure of risk attitude?
A monopolistically competitive firm:
Your employer decides to institute a new compensation scheme next year. They will pay you $25,000 no matter how much you work. However, since they employ nothing but workers who earn at least double the minimum wage, they will cut wages by 50%. Draw ..
Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.
Elucidate how which any two pure strategy equilibria of a zero-sum game are interchangeable also equivalent.
Bob places a $10 value on a glass of red wine, and Keith places an $8 value on it. If there is no tax on glasses of red wine, the price of a glass of red wine reflects the cost of making it. The equilibrium price for a glass of red wine is $6. Suppos..
When a purely competitive market is in equilibrium:
A more serious problem with input-based pay systems (e.g., a wage her hour), relative to an output--based system, is:
Always Round Tire is the only producer of tires for the new British import, the Maxi Copper. Demand for a set of four tires is P = 800 - 5Q (note: Marginal Revenue has twice the slope as the demand curve) while the cost incurred by the firm is MC = 1..
Suppose current market federal funds rate is 0 percent. The interest rate on long term government bonds is 5 percent and risk premium for this bonds is 2 percent. Assume liquidity premium hypothesis and expectations hold. Explain how the Fed can boos..
Explain how might knowledge of organizational behavior help the company's frontline store supervisors manage their employees.
Sam sells shavers also Alvin sells after cut off. Imagine Sam discovers a new production technique that lowers his costs of production.
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