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Assume that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the first day of the month, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero.What is your average daily money balance for the month?
How would each of the following changes in assumptions affect your average monthly balance? Be specific with your answers.You are paid $500 twice monthly (1st and 15th) rather than $1,000 each month.
You are uncertain about your total spending each month.
You spend a lot at the beginning of the month (e.g., for rent) and little at the end of the month.
Your monthly income increases.
Consider the following two good pure exchange economy: Alfred's utility function is U A (x, y) = min{x, y} and Bob's utility function is U B (x, y) = max{x, y}.
The equivalent uniform yearly cost per machine (years 1-5) at an interest rate of 8% per year is.
It is well documented that carbon monoxide emissions from combustible engines increase in colder climates. This implies that associated damages are expected to become less severe in summer months than in winter.
Currently one argument against the continuation of state regulation of insurance and one argument.
What takes palce to output, the optimal scale of a firm, and price if there is a free entry into the market.
Assume x and y are the only two goods a person consumes. If after a rise in p x , the quantity demanded of y decreases, one could say
The investment demand curve is a useful tool to summarize an important and complex relationship in the economy. The determinants that may cause this Investment Demand Curve for the U.S. economy to shift are acquisition
They could have rented it on the open marketplace for $700 per month. The condo owner was formerly renting the unit for $500 every month.
Using a supply and demand graph, make one shift of wither the supply or demand curve to illustrate the likely result of this action.
Assume you were appointed economic adviser to a less-developed nation in Africa. The nation seeks to encourage capital formation and wants to increase the rate of saving.
The firm is considering a movement of the plant to Shenzen, China where labour is cheaper. The same mathematical relationship between inputs and outputs will hold.
Prove that a risk-averse von Neumann-Morgenstern perticular will over-insure, fully-insure, or under-insure according as the insurance is available
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