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Q. Here is the question I need help on: Suppose that in New Crankshaft, Pennsylvania, the quality distribution of the 4, 000 used cars on the market is such that the number of used cars of value less than V is V/2. Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it. An owner can both take his car to an appraiser and pay the appraiser $100 to appraise the car (accurately and credibly) or sell the car unapprised. In equilibrium, car owners will have their cars appraised if and only if the cars value is at least?
Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.
Organize the above data into the appropriate categories for the current as well as capital accounts determine the current account balance, the capital account balance, as well as the official settlements account balance.
A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees.
Explain the difference between Discretionary Fiscal Policy and Automatic Fiscal policy. Provide an example of each.
Find the equilibrium price and quantity algebraically. If tourists decide they do not really like T-shirts that much, which of the following might be the new demand curve.
Explain how much shelter can she buy if she purchases 2 units of food.
What are the factors that affect pay differentials? How does each factor increase or decrease relative wages?
Free zone would happen if the central bank lowered the federal funds rate and buy securities on the open market.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
Explain how it is possible for one of two people in a two-good economy to have an absolute advantage in producing both goods, but trade can still benefit both people.
What is the cross elasticity of demand for pipes and pipe tobacco.
We operate 300 days per year and have found that an order must be placed with our supplier 6 working days before we can expect to receive that order.
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