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Suppose the nominal rate of interest on a bank certificate of deposit is 12 percent. What would be the effect of an inflation rate of 13 percent?
Write out a regression with quarter dummies (use summation notation to be compact). How is this same as a time fixed effects regression? Write out a regression equation with a variable “time,” which takes on the value 1 at the beginning of the sample..
select a firm whose stock is publicly traded on a u.s. stock exchange. what strategic changes has this firm made over
Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?
1. use the numbers to answer the following questionsincomespending0120004000036000a what is autonomous spending?b what
Using these schedules, draw a demand curve and a supply curve using PowerPoint or Excel. Use these to decide the equilibrium price and equilibrium quantity for the product. Analyze five reasons why demand for this product could shift.
Jessica's preferences can be represented by a utility function: U(x, y) = max(x, y). Consider a bundle { x = 10, y = 3 }. Draw Jessica's indifference curve containing this bundle. Explain why her preferences are "non-convex"
A machine was installed 5 years ago. Its market value is now $15,000 and is expected to decline by 10%/year over the next five years. It is projected that this machine will be operational for another five years, after which time it will be scrapped (..
Shampoo manufacturers reinvest a relatively large percentage of their sales revenue on advertising campaigns. Many of the advertisements claim that their product is 'new and improved.' Why?
Businesses usually decide in using automation and labor in production. An automotive environment may have high fixed costs and low variable costs,
Supply and Demand Concepts
1. to get the best deal on a cd player tom called eight appliance stores and asked the cost of a specific model. the
A constant cost, perfectly competitive market is in long-run equilibrium. At present, there are 1,000 firms each producing 400 units of output. The price of the good is $60. Now suppose there is a sudden increase in demand for the industry's produ..
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