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Consider an economy of three-period-lived people in overlapping generations. Each person is endowed with y goods when young and old and nothing when middle-aged. The population of each generation born in period t is Nt, where Nt = nNt−1. There are no assets other than loans. Explain how credit can be used to provide for consumption when middle-aged. Point out who lends to whom and write the condition for the equality of supply and demand for loans in period t. Write the budget constraints for the young, the middle-aged, and the old. Be sure to define any notation you introduce.
Utilizing a graph of equilibrium in the housing market, describe carefully which parties win and which parties lose from rent control.
What are the benefits and drawbacks of having a health program that varies by state versus having one that is uniform across the country? Do you find that the positives of state flexibility outweigh the negative or vice versa?
q1. when the federal government decreases the individual and corporate income tax rates?q2. between sweezy oligopoly
The constant price elasticity of demand for cigarettes has been estimated to be -0.5. To reduce smoking by 50%, approximately how much tax needs to be added to a $1 pack?
Serenity, Mac's Firefly-class spaceship, smuggles cattle from one planet to another. On one trip Mac purchased 90 head of cattle at a price of $5,000 for every 30. At his destination, he sells them for $1,000 apiece. What is Mac's Revenue and Profit?
Illustrate what happens to interest rates when the riskiness of bonds rises using the supply and demand for bonds framework. On another graph, illustrate what happens to interest rates when the riskiness of bonds rises using the liquidity preference ..
Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k
Prepare a CPM/PERT chart and determine project duration based on normal project duration (using Normal Time) Prepare a CPM/PERT chart and determine the shortest time this project can be completed taking (using Crash Time).
Classify each of the following scenarios as an example of adverse selection or moral hazard. Be sure to support your answer! Nordstrom†TM s cannot predict who is going to be a good shoe salesperson.
One day you arrive to discover that the coffee shop has changed its name to Five bucks and is now charging $5 per cup.
q. george and john stranded on an island use clamshells for money. last year george caught 300 fish and 5 wild boars.
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