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There is strong empirical evidence to support absolute convergence across the US states (when each state is viewed as a separate economy) and there is somewhat weaker evidence to support absolute convergence across Europe. On the other hand, there is no evidence to support absolute convergence across the world as a whole. Use the Solow model to explain these observations.
How can the organization use technology to change this balance for an advantage?
Summarize the arguments as to why we should not worry about the very large size of recent and current Federal deficits and our National debt. Deficits naturally occur with business cycles. Deficits can be used to lower unemployment now. Deficits spen..
Your firm is in a major industrialized state, which has a state corporate tax rate of 9.5% of taxable income. If your firm has a gross income of $500,000, operating expenses of $275,000, and depreciation charges of $75,000: a) What is the taxable inc..
Would you expect deviations from the law of one price between the United States and Mexico to have risen or fallen over the past two decades? Explain your answer carefully, providing details on the types of goods and services which you believe would ..
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Given the change in interest rates, would you expect to pay mo..
Locate an article from a financial periodical from the past 2 years about a company that restated its financial statements due to an error in accounting principal. Examples of periodicals are CFO and Journal of Accountancy.
PV and loan eligibility You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you could afford if you fin..
Why might bad cars drive good cars out of the used-car market. Give at least two possible solutions to resolve this paradox.
Assume that all wages and prices are completely and immediately flexible. If the growth rate of the money supply is 8%, the growth rate of the velocity of money is 4% and inflation is 6%, what is the Solow growth rate?
A monopolist like Spago (a famous Hollywood restaurant frequented by movie stars) can fully pass on all the marginal cost increases to its diners through higher prices since it is a price maker and can charge any price it wishes. True, False, or Unce..
How much has personal income changed the last two years? Identified any problems the government needs to address, and possible solutions?
Discuss the gold standard briefly.
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