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Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved preferences. a. Draw Claire's budget constraint and indierence curves. Draw her indierence curves such that she chooses to save money. b. Suppose the interest rate increases to r0. Show how the budget constraint moves following this change. c. Will Claire remain a saver after the price increase? Show why on your diagram.
Would you support the option for expansion abroad or relocate back to the United States?
Why would a chain such as Marriott tend to own its hotels in resort areas, such as national parks, where there is little repeat business and franchise hotels in down-town areas, where there is a lot of repeat business? Thinks of the reputation ..
research and discuss the differences and importance of ipps opps mpfs and dmepos. which provider type is paid by which
People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of imports causes net exports to rise. Using the circular flow diagram as a guide, explain why total expenditures and national o..
What must an entrepreneur do in order to introduce a new innovative product? What determines whether the new product will be a success or failure?
according to the chief engineer at the zodiac company qalakb where q is the output rate l is the rate of labor input
A flood control project with a life of 12 years will require an investment of $300,000 and annual maintenance costs of $25,000. The project will provide no benefits for the first 2 years however will save $40,000 per year in flood damage starting in ..
your last assignment brings you to work with the government of sweden on textile markets. sweden is fully integrated
Name two factors which you feel are driving the current (albeit sluggish) recovery. Describe whether or not you feel these factors will continue to exert a positive influence on GDP moving forward. Similarly, name two factors which you feel are putti..
Explain the rationale for government regulation of companies with market power. Is regulation in the customers interest or in producer's interest and how might this control special interest groups?
What are the potential consequences of a country having a large overall national or public debt? If you were in the position to implement a solution for the country's long-term debt, what would it be and why?
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