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You are in a meeting to discuss two possible acquisitions. The discussion of one results in considerable debate. One group presents credible arguments that the purchase encompasses the possibility of significantly larger profits after the acquisition while others with equally credible arguments claim that it involves significant risk of a considerable loss. Everyone attending the meeting agrees that the second acquisition is attractive and has little risk. Which of the two acquisitions provides a greater chance of a significant return?
What is the equilibrium price in the market? What is the amount sold and bought?
In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal reserve react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
A decrease in demand for coffee can be cause by:
Returning to question 2, suppose the government put a tax on soda of $.50 per can to be paid by consumers. Graph the before and after tax supply and demand curve. What is the new ewuilibrium price and quantity?
What are bureacrats and what do economisits argue negatively when considering them in today's economy? Provide an explantion/example of why.
Following the collapse of systemically important banks in 2008, were the G-20 group of countries right in early 2009 to coordinate their fiscal policies and increase government spending? How would you distinguish the effect of such a policy on (i) co..
Explain why physician groups and health service workers’ unions prefer stricter licensure requirements rather than cost control efforts from legislators. What are the most difficult aspects of the Coase Theorem in solving a problem like spread of a d..
Explain why study pure competition if actual purely competitive markets do not exist? What can we learn from highly competitive markets. Briefly discuss.
one receives a higher salary with the successful completion of degrees or the earning of diplomas. Elucidate how the sheepskin effect is analogous to SIGNALING MODEL.
Calculate the percentage change in nominal gdp, real gdp and the gdp deflator in 2008 and 2009 from the preceding year. for each year identify the variable that does not change. explain in words why your answer make sense.
q1. assume that the reserve requirement is 25 percent. if a single bank has excess reserves of 500000 explain
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