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Explain the difference between the incentives of the owner of a house and renter of a house to undertake expenditures designed to improve or maintain the house. For example, are renters more likely to replace light bulbs or wall-to-wall carpets when they wear out? When renters spend funds on a new bookcase, is it likely to be built-in or portable? What are the parallels between incentives here and the incentives of Congress when it comes to current expenditures versus capital expenditures?
One of the biggest risk factors for multi-nationals enterprise (MNEs) is using the potential volatility of exchange rates. Explain mechanisms that can be used to alleviate the risk, including discussion of ways in which an MNE might increase profi..
Two goals of monetary strategy in the United States are price stability and full employment. Explain with the help of the appropriate graphs.
What is the equilibrium level of income? Compute disposable income, consumption and aggregate demand.
About 30 US localities circulate their own currency with names such as "Ithaca Hours" and Dillo Hours." Doing so is perfectly legal
A central city imposes a rent control law that places a binding ceiling on the rent that can be charged for an apartment. The suburbs of this city do not have aren't control law. What happens to the rental prices in the suburbs and to the equilibr..
In addition, pi* is the central bank's target level of inflation , and b is some positive parameter. This rule states that the central bank raises the real interest rate above its long-run level when inflation is above its target and lower when it..
Suppose that the market for haircuts in a community is perfectly competitive and that the market is initially in long-run equilibrium. Subsequently, an increase in population increases the demand for haircuts. In the short run, we expect that the ..
What is the real mortgage interest rate in 2001, 2002, 2003 and 2004, what are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004?
At a product price of $56, will this company produce in the short run explain why or why not? If it is preferable to produce, what will be the profit-maximizing or loss minimizing output
Suppose that the software market currently has one firm operating -Microhard. What contract should be writen between the bank and Newvel?
Many of the new residents have expressed concern at the amount of pollution (primarily particulate matter in the air and waste water in the town's river) emitted by Branding iron. Three proposals have been made to remedy the problem.
Matt is a 25 year old engineer, and his salary next year will be $60,000. Matt expects that his salary will increase at a steady rate of 5% per year until his retirement at age 65. If he saves 10% of his salary each year and invest these savings a..
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