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Consider an economy with three equal sized economic classes: the poor, the middle class, and the rich. At currently prevailing prices, the rich buy new houses and after 20 years sell them to the middle class. The middle class buy 20 year old houses and after another 20 years sell them to the poor. The poor buy 40 year old houses and hold them for another 20 years at which point the units are retired. Suppose that, in an effort to make housing more affordable, the government provides a rental subsidy for the occupiers of units more than 20 years old.a) What are the likely effects of this subsidy on the price of housing units more than 20 years old and the price of housing units less than 20 years old?b) How might the behavior of the three income groups change in response to these price changes?c) Which groups are likely to benefit from this subsidy?
Who is hurt and who benefits from each of the two types of inflation What is the impact that inflation has on our income List and describe two examples of when inflation may be understated as a result of how the CPI is measured.
Suppose your monthly mortgage budget is $1,650. What is the maximum price of the house that you could afford? Assume you will put 20% down payment with a 30-year fixed rate at 3.5% APR, and your annual taxes and insurance are $1,800 and $1,200 respec..
Locate examples of when an organization demonstrated the validity of a hiring test (or attempted to demonstrate ones validity). Describe what was done, the type of validity claimed, and what was found.
Suppose your marketing department does a survey of potential users and finds that these users place the following values on the two versions of your software If the numbers of home and commercial users are equal, and you cannot distinguish between ..
The university has built a new parking garage. There is always an available parking spot, but it costs $1 per day. Before the new garage was built, it usually took 15 minutes of cruising to find a parking space.
Corporations such as McDonalds may be partially responsible for health issues such as obesity, but how much of the responsibility goes to the US Dept. of Agriculture, which has subsidized the production of cheap and nutritionally empty foods
a company uses two variable inputs labor l and materials m to produce its output. at the companys current level of
You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest.What is the opportunity cost of spending the $100 now?
Analyze the process of forecasting foreign-exchange rates and create a short list of best practices. Explain your rationale for selecting the practices you did.
1. if the economy is in equilibrium and suddenly the level of planned investment increases by 2 billion national income
Graphically show how the short run Phillips curve can shift when actual inflation is less than expected inflation be sure to include a description of all the key points in the model.
Consider the table below, showing stock option prices for various contracts (per share) : Stock price Strike price Option type Option Price
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