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Consider the OLG model with warm glow preferences in Section 9.6, and suppose that preferences are given by u1(ci(t)) + u2(bi(t)), where u1 and u2 are strictly increasing and concave functions. The production side is the same as in the text. Characterize a dynamic equilibrium of this economy. Provide sufficient conditions on u1(.) and u2(.) such that (1) aggregate dynamics are globally stable, and (2) all individuals asymptotically tend to the same wealth level.
A group of enterprising engineering students has developed a process for extracting combustible methane gas from cow manure (don't worry the exhaust is odorless). With a specially adapted internal combustion engine, the students claim that an auto..
Using the numerical example in problem 5, assume now that Foreign limits immigration so that only 2 workers can move there from Home.
Choose one or more areaa of your relationship you would like to improve which is discussed in the course materials (listening skills, conflict management, perception, nonverbal communication, improving communication climate, etc.,
If the local government can enforce a rent control law that sets the maximum monthly rent at $1500, will there be a surplus or a shortage, of how many units and how many units will actually be rented each month
Suppose that deposits and bank reserves pay no interest, and that banks lend deposits not held as reserves at the market rate of interest. Who pays the inflation tax (measured in nominal terms), and how much do they pay?
How do your results in questions #2 and #3 help to explain the tendency of recessions and expansions to spread across countries?
Suppose you inherit $10,000 and decide to use the money to start a lawn-care business. You purchase a truck and a mower for $10,000 and start mowing lawns. Your annual cost for fuel and other supplies is $2,000.
Given the SR = $2/£ , and FR90 =$1.99/£ and rUS = 5% and rUK = 8% A)Calculate r* (the home country currency rate of return). B) Would you see inward or outward interest arbitrage
Abby consumes only apples. In year 1, red apples cost 1$ each, green apples 2$ each, and Abby buys ten red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples.
Valuation relates to product liability because a judgment (estimate) must be made regarding the expected cost of defective products.
Harrison, Carla, and Fred are housepainters. Harrison and Carla can paint 100 square feet per hour using a standard paintbrush, and Fred can paint 80 square feet per hour. Any of the three can paint 200 square feet per hour using a roller.
Assume that gross private domestic investment is $800 billion and the government (state, local, and federal combined) is currently running a $400 billion deficit. If households and businesses are saving $1,000 billion, what is the value of net exp..
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