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You are planning to go to college and your tuition the first year is estimated for be $9,000 the first year and is expected to increase by 4% per year. How much would you have to deposit in a fund earning 6% annually to cover your tuition for 4 years?
Suppose that we have a standard real intertemporal model with investment with two twists. First, the effect of the real interest rate r on current consumption C is assumed to be zero. Graphically derive the aggregate output demand curve Yd under thes..
In the fall, Jay Thompson decided to live in a university dormitory. He signed a dorm contract under which he was obligated to pay the room rent for the full college year. What are the three alternatives available to Jay? Evaluate the cost for each o..
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 1000 Japanese yen, but finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A farmer’s field grows 30 bushels of corn and 10 bushels of beans. The farmer can either consume these crops herself or trade them, with one bushel of beans being traded for one bushel of corn. Graph the farmer’s budget which is the possible combinat..
Suppose that Italy and Sweden both produce jeans and stained glass. Italy's opportunity cost of producing a pane of stained glass is 4 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 10 pairs of jeans.
Types of oligopoly that pertains to the automotive industry. The four assumptions that relate to game theory. Types of business strategies employed by the automotive industry. Does "Cheap Talk" promote good business relationships? Please explain.
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $8.00. In year two, the price of the same basket is $7.00. From yea..
What are the essence of TRIP, TRIM and GATS agreements? What are the implications of these agreements for the development of LDCs?
The political business cycle refers to the fact that about every four years some politician advocates greater government control of the Fed.
Foreign Direct Investment How would a Foreign Direct Investment (FDI) cause an increase in Growth in Developing Countries (GDP)?
Elucidate which of the following events would cause the price differences in these letters to get smaller.
Explain why "globalization" may well be related to "long-term household wealth" and the domestic "velocity of money" in the U.S. macro-economy.
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