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You have decided to buy a small apartment building for $100,000 near a local college. You used $10,000 as a down payment and obtained a mortgage from a local bank for the remaining $90,000. The annual mortgage payment to the bank is $11,500. You expect that the annual maintenance on the building and grounds will be $14,500. There are four apartments (two bedrooms each) in the building that can be rented. Assuming 100% occupancy all year, how much rent per month must you charge in order to break even, such that your revenue equals your expenses each month. (Enter your answer as a number without the dollar sign.)
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations’ government change taxes in order to completely close that GDP gap?
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
An asset is purchased for $745,000 today. It will have a $76,000 salvage value after 5 years of use. Using the straight-line (SLN) method, calculate the depreciation charge for year 2 and the book value at the end of year 2.
Find the Nash equilibrium of this Bertrand game and find the equilibrium output and profit for each firm.
en spends her afternoon at the beachood also drinks rather than expenditure an equal amount of funds to go to a picture.
Boris budgets $40 week for his morning coffee with milk. He likes it only if it is prepared with 3 parts coffee, 2 part milk U= min{3/2M,C}. Coffee costs $2/oz, milk $1/ oz. (For the questions below, show your work briefly) How much coffee and how mu..
If a price in a competitive market is "too high to clear the market," what does this normally mean. Assume upward-sloping supply curves.
Compute how this policy affects consumer surplus, and the cost of pollution. Would you recommend this policy.
Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
Economists sometimes shock noneconomists by stating that they do not favor the complete elimination of pollution. Explain the rationale for this position.
What is the belief that laws are justified if they prevent a person from harming him- or herself known as?
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