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Consider a bond that promises to pay $100 in one year.a. What is the interest rate on the bond if its price today is $75? $85? $95?b. What is the relation between the price of the bond and the interest rate?c. If the interest rate is 8%, what is the price of the bond today?d. How does the demand for bonds vary with the price of bonds?
Now suppose that both a second secretary and a second computer are hired. As a result of specialization, the two secretaries together can now type 5 papers per day. Does this firm have increasing or decreasing returns to scale in the current range
Illustrate what is the present rate of unemployment and the current rate of inflation
Smokey's Garage, Inc., provides routine auto diagnostics for customers in the Atlanta metropolitan area. Tests are supervised by skilled mechanics using equipment produced by two leading competitors in the auto test equipment industry. Records f..
Compare and contrast the behaviour of the indicators for the United States with those for the Australian economy and which industry experienced the highest rate of growth in the twelve months March quarter 2013 - March quarter 2014?
Describe how real GDP per capita has changed throughout the world from 1820 to the present. 1.3 How is labor productivity related to the standard of living?
Matt and Johnny both purchase pop and chips at the same convenience store. They have different tastes for pop and chips, so Matt buys 3 cans of pop and 10 bags of chips whereas Johnny buys 15 cans of pop and 2 bags of chips.
Suppose that the income elasticity of demand for land is +0.75. The unit commuting cost (cost per mile) is the sum of monetary cost (30 cents per mile) and time cost (opportunity cost). Suppose that the typical commuter earns a wage
Under the expectations hypothesis, if long-term yields are higher than short term yields, does this mean that future long term rates should go up, down, or stay the same?
Now suppose this game is to be played an unknown number of times. Both firms know that there is a probability .1 that the current play of the game will be the last time the game will be played. So there is a probability 1.0 that the game will be p..
1. in april 2009 the u.s. unemployment rate was 8.9a. according to one version of okuns law the gdp gap is twice the
How the process of globalization in trade of your good been eroded through regional and multilateral agreements. You should identify the extent to which barriers have been eroded through these agreements as well.
Elucidate the difference among the consumption of a free good and a good that is not free.
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