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Changes in the federal funds interest rate often lead to similar changes in the prime interest rate (i.e. the short-term interest rate banks charge their best business loan customers). Indicate whether this statement is TRUE or FALSE; and then provide support for your answer.
Referring to the 10-year historical period 1980-1990 discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy.
A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income received by each quintile of this income distribution. Do the top an..
State whether the following actions will increase or decrease GDP:
The Clean Air Act, a federal statute, establishes national air pollution standards for fleet vehicles such as buses, taxicabs, and trucks. The South Coast Air Quality Management District (South Coast) is a political entity of the state of California...
Discuss any problems associated with using majority voting to determine the optimal level of a public good.
Suppose your friend is considering quitting school to take a well-paying job. One day she says to you, "Friend, I'm not sure what to do. I've put so many months into the bachelor's program. It doesn't make sense to give up now, does it?" Considering ..
The Jimmy Corporation issued a new series of bonds on January 1, 1996. The bonds were sold at par ($1000), have a 12% coupon rate, and mature in 30 years, on December 31, 2025. Coupon interest payments are made semi annually (on June 30 and December ..
What steps should multinational companies take to ensure that their subcontractors are behaving in an ethical manner? How should companies make human rights issues part of their overall policy?
I have noticed that politicians continue to advocate an increase in the minimum wage. Politics and political manoeuvring aside, is there an economic reason as to why a higher minimum wage would benefit the economy?
The board of a company has to elect a new CEO. Three members are on the board, 1,2,3. After a first round of selection, three candidates are left: α, β and γ. Preferences are as followed: Consider the game when all weakly or strictly dominated strate..
For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annually, compounded monthly?
The marginal damage to your neighbor's business is a function of how many alligators you keep and the amount of money spent on a fence that separates your properties:
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