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Assume that a country is growing at 5% per year. Now the saving rate decreases leadingto a new lower growth rate of 3.3% per year. How will the change in standard of living over time be impacted by this change in the saving rate and therefore the growth rate?
A firm's fixed costs are $600 regardless of the output; Variable costs are $5 per unit of output. TC = FC + VC. The selling price of the good is $10 per unit. State the FC function, VC function, TC function and total revenue function. Find the breake..
1. Note that the current and capital accounts in the U.S. Balance of payments (BOP) are mostly private transactions while the official settlements balance involves transactions between governments
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
Martin lives for two periods, earning $50,000 in income in period 1, which he consumes or saves for period 2. The interest rate on his saving is 10% per year. Interest income is taxed at rate τ = 30%. Draw Martin’s intertemporal budget constraints wi..
Hedging: The Zinn Company plans to issue $12,000,000 of 20-year bonds I June to help finance a new research and development laboratory. Use this information to create a hedge against rising interest rates.
According to the US Department of Health and Human Services, individuals living in rural and isolated areas face special challenges in receiving timely, quality health care (Fact, 2006). Discuss your thoughts on the impact of policies that call for i..
The markets for natural resources such as copper are constantly adjusting to changes in both supply and demand. How would your argument in part a change if, instead of the mine closures being unanticipated, it was actually easy to see the closures co..
Substitution and income effects of a change in price of a good may be used to explain the:
Maximizing Total Revenue and maximizing Total Profit are the same goal when:
Which assumption about consumer preferences is violated in this scenario. Randy likes basketball more than football; football more than baseball; and baseball more than basketball.
Explain the problem of time lags in enacting and applying fiscal policy. What is the difference between the national debt and a budget deficit? How does the crowding-out effect relate to fiscal policy?
Assume an economy that consists of consumers, government, business investors and an international sector. we will express this economy this way C+I+G+X=GDP Assume that the MPS is .3 How much can we expect the economy to expand if goverment increases ..
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