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Suppose a household in a two-period model has income of $30,000 in period 1 and $250,000 in period 2, and the interest rate is 75%. Assume the price of the good is $1 in both periods. Suppose that the household decides to consume 26,000 in period 1 and 32,000 in period 2. Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
Illustrate what is factor-proportions theory, also how is this theory useful in determining production advantages
Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
Elucidate how much the equilibrium quantity of wheat sold. Elucidate the actual cost which is equal to the equilibrium cost.
Which nation should specialize in which product. Explain how trading possibilities lines for each nation if actual terms of trade are 1 plum for 2 apples.
Chemical process that converts hydrogen and oxygen into electricity and waste heat Oxygen from atmosphere, hydrogen from gas, solid hydrogen storage, or from hydrocarbon fuel Produce few emissions. How do we pick best energy alternative.
Illustrate what can we conclude about the income elasticity of demand?is it positive or negative. what class of goods candy bar belongs to.
explain how governments can contribute, or discourage long run growth through their policies and institutions.
Illustrate that an increase in government spending can improve consumer welfare.
Illustrate what were you thinking about the economy in 2005 and did you ever foresee a crisis of this magnitude.
In what ways and to what extent did coffee production contributed to the growth and development of the Brazilian economy before 1930.
Hypothesize the basic short-run also long-run behaviors of the model in the industry you have chosen in a "marketplace economy."
here are many liquid cold medicines, all of which have almost exactly the same ingredients. Yet medicines with brand names that the man recognizes from television commercials are for more than the unadvertised versions. Elucidate in economic terms..
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