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Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $13,000 this year. He expects these to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 6%? If he earns an extra $15.000 annually for 40 years, what is the present worth of his degree?
q. rob and nate enjoy playing disc golf and are always interested in getting some new discs. robs annual demand for
Consider an economy in which people wish to hold money balances worth a total of 5 million goods. They are indifferent between money issued by the central bank and money issued by private banks (as long as both offer the same rate of return). What ra..
Economics is best described as the, A 5 percent increase in income leads to a 10 percent decrease in quantity demanded for a service. This service is a(n) __________ good and demand is __________.
indicate for each price whether the firm will produce, shut down, or be indifferent between the two in the short run, and whether it will make a profit, suffer a loss, or break even.
Suppose that the cost of eradicating polio from a society of 1,000 persons is $5 per person. Also suppose that only two persons in that society will benefit from that policy, and the benefit to each of those persons is $2,000. Then what is the social..
In the two countries, Techi and Aggi, the costs of all factors of production are constant, the factors are perfect substitutes for each other and thus equally productive (efficient). Currently, before trade, Techi’s residents prefer to produce and co..
Suppose a firm has the production function Q = K0.4L0.6. The wage rate is given by w and the rental rate of capital is given by r. Find the firm’s demand functions for K and L. Suppose the firm is currently producing Q = 100 units of output. Suppose ..
In a situation of a fixed exchange rate, explain why, in the monetary approach, an excess supply of money leads to a balance-of-payments deficit. Why is the deficit only temporary? How might advocates of the monetary approach explain a long-lasting d..
How are the forecasts likely to be inaccurate? What do you think is driving inaccuracy? How might this problem be solved?
Peter consumes comic books (c) and sodas (s). His utility over comic books and sodas is given by u(c,s) = −1 c − 1 s . His income is $10/weeks. Please do not be confused by the fact that the utility here is going to be a negative number, it has no si..
what is the growth rate of constant- dollar real gdp using year 1 as the base year? What is the growth rate of constant- dollar ral GDP using year 2 as the base year?
The article touches on two crucial conditions for a fiscal stimulus to work.
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