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Suppose that the money marcket in Westlandia is initially in equilibrium and the central bank decides to decrease the money supply.
a. Using a diagram, explain what will happen to the interest rate in the short run?
b. What will happen to the interest rate in the long run?
Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..
Assume Microsoft chooses to produce 80 million copies of the software per year and sells copies of the software to retailers at $199 per copy.
Explain the difference between ex-ante and ex-post real interest rate. Why don't investors know the ex post rate when they make their initial investment?
conomist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth.
Case study: loan payments in Great Britain's retail banking sector changes in their operating environment have facilitated greater competition in the British retailing banking sector. Where is the equilibrium price of a loan per customer? Now how man..
U.S. policy to increase the miles per gallon (mpg) of new cars is to mandate an average mpg for cars sold by U.S. manufacturers. In many countries within the European Union, the policy is to tax gasoline so that the price per gallon at the pump is st..
uppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are wi..
If you were an investor, would you support a project by starbucks to deliver starbucks product through a smart phone app within one building-say the Empire State Building, or the Columbia Tower in Seattle, or the Sears Tower in Chicago? Why and why n..
Suppose that a company produces output according to the following production function: Q=0.5L2. Define & calculate the marginal product of labor. Define and calculate the average product of labor.
Rotor Turbine Engine Company needs a new automated gear production machine. It has two bids with associated estimated data: Use IRR and incremental analysis to determine which company to recommend, if any, given an MARR of 12% per year compounded ann..
Which of the following statements are true about both monopolistic competition and monopolies?
What are problems associated with implementing JIT purchasing. What are some of expectations of suppliers.
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