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Suppose that you bought an asset that pays 6% nominal interest rate, you expect that inflation rate to be 1%, and the actual inflation is 4%. Calculate the expected real interest rate and the actual real interest rate.
Some states are required to balance their budgets. Is this measure stabilizing or destabilizing Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on th..
What was the growth rate of real GDP between 1996 and 1997? f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.
Almond growers in CA are very concerned. Normally, honey producers would keep their bees next to almond orchards, where the bees would gather nectar and pollinate the almond trees. Lately however, bee keepers have moved to Arizona where it is chea..
Illustrate what is the minimum national loss if Canada is a small country that can not affect the world price.
Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.
Given that this is a training manual to sensitize employees, how will this affect any practices at the company.
Assume the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur. Illustrate.
Illustrate what are some advantages of a unionized organization. What are some disadvantages.
A company must decide whether to buy Machine A or Machine B.Machine A:Initial Cost: 10,000
Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $15,000 in currency into the bank and that currency is added to reserves.
Suppose Ke, the required rate of return, goes up to 12 percent; what will be the new value of Po?
Oligopolists are interdependent firms. What is mean by that Explain "strategic behavior" and relate that to the "Kinked Demand" model of oligopoly. Explain the importance of mergers in oligopolistic markets. Is there much price competition in an ..
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