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A student loan totals $18,000 a graduation. The interest rate is 6%, and there will be 60 payments beginning 1 month after graduation. If this student received $1,500 as a graduation present and uses it to pay off an extra $1500 in the first month, when will the final payment be made and how much is it?
Now suppose that the interest rate falls to 50 percent, and the household decide not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
Use these data to calculate the following:a.Private saving b.Public saving c.Government purchases
q1. ibm should never sell its product for less than it expenses to produce. if costs to produce is interpreted to mean
A large automobile manufacturing company is considering the installation of a high-tech handling system. Show your cash flow diagram from the company’s perspective. Should the system be recommended for investment? Show all your work and detail your r..
The Keynesians claim interest rates guarantee that savings will equal intended investment. The Keynesians claim that wages and prices are “downward sticky”. In the Keynesian model the velocity of money moves against GDP. Determine the socially effici..
Suppose that in year 2008, the money supply is $400 billion, nominal GDP is 9 trillion, and real GDP is $4 trillion. Illustrate what is the price level. What is the velocity of money.
If the mortgage interest rate is 7 percent, approximately how much are home owners paying in annual mortgage interest? b. If the interest rate drops to 6 percent, by how much will annual percentage decline?
An economy with nominal tax rates significantly higher than effective tax rates has
In a perfectly competitive industry in which firms have U-shaped average cost curves, the long-run market supply curve is a horizontal line. This market supply curve is not the horizontal sum of individual firms’ long-run supply curves.
The manufacturer of Brand A automobile tires claims that its tire can save 110 gallons of fuel over 55,000 miles of driving, as compared to a popular competitor (brand B). If gasoline costs $4.00 per gallon, how much per mile driven does this tire sa..
Considering the following concepts such as GDP, unemployment, monetary and fiscal policy. Pick an recent newspaper article (New York Times, Wall Street Journal, etc.) that focuses on DELL INC. Describe the event and the issue for DELL INC. (summarize..
they both can earn 10$ an hour they both have non-labor income of 300$ per week and they have 110 hours per week of non sleeping time. Who would works the most hours also how much do each of them make per week
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