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1) In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 Percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
2) In Wiknam if Real GDP growth slows what would you expect to happen to the inflation rate?
3) If Wiknam households expect higher inflation in the coming year, how might that effect Money Demand, the real interest rate, the nominal interest rate and actual inflation?
The Sarbanes-Oxley Act provides for the establishment of the _____________ to over see audits of public companies. This will be done to protect the interests of shareholders and investors.
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $2 and the price of soybean feed is $6, what is the cost minimizing combination of producing P = ..
Advantages and disadvantages of a company using price discrimination in order to increase demand for its product or service.
Nominal interest rates are quoted at a variety of maturities, corresponding to different lengths of loans. For example, in late 2004 the U.S. government could take out ten year loans at an annual interest rate of a bit over 4 percent, whereas the ann..
Suppose that in addition to repairing your car, you can also spend money advertising. If you repair your car for Hours and spend A dollars advertising, your benefit (the amount you receive when you sell your car) is B(H,A)=220H-H^2+2A. What is your b..
Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How does technological progress shift the labour demand curve? Professors, lawyers and doctors receive similar amounts of education, why are pro..
What are the opportunities presented to individuals and firms that result from technological innovation and changes in real-world competition
What determines price elasticity of demand for a product. key determinants of price elasticity of demand are as follows: i. Availability of close substitutes- gas stations across street, very elastic.
Chrysler engineers helped Toyota develop its Sienna minivan. In return, Toyota provided input on automobile production techniques to Chrysler. Why do you think Chrysler was willing to share its minivan know-how with a key competitor?
State in words and show with a graph the effect of the following events on equilibrium price and quantity of the market given The price of cheese increases. Market: Pizza A study is released showing that eating apples causes caner. Market: Apples Inc..
Suppose you make 30 annual investments in a fund that pays 4% compounded annually. If your first deposit is $6,000 and each successive deposit is 4% greater than the preceding deposit, how much will be in the fund immediately after the thirtieth depo..
What are the basic issues involved in recruiting and selecting managers for foreign assignments? Why is performance appraisal important for international firms? How does international HRM for non-managerial employees differ from that for managerial e..
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