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For the CES utility function U(x, z)= x^p + z^p. Derive expressions for the optimal levels of good x and good z as functions of the price of good x, z,pz and income, Y. For simplicity assume that the price of good z is normalized to be 1. What is the optimum value of z?
The plant has accumulated savings of $80,000 to acquire a new machine for the Manufacture Department. The new machine costs $80,000. The Straight line depreciation method is used buy this plant in all its equipments. Compute the present worth after t..
What is the mechanism in the economic system that guarantees the saving of the economy will always equal the investment of the economy? You may assume a closed economy in answering the question.
The volatility of the present floating exchange rate regime presents a conundrum for international business. Exchange rate movements are difficult to predict and yet their movements can have a major impact on the competitive position of business. Wha..
Tara bought a corporate bond with a face value of $20,000 at a discounted price of $18,000. The bond pays a dividend every year payable quarterly. What is the quarterly dividend Tara should get if she hopes to get a 12% return on her investments? Ass..
What would you expect to happen to the demand for credit cards by students? What would you expect to happen to the quantity of credit cards issued to students? To the willingness of students to incur debt at the much higher rates of interest charged ..
From the e-Activity, identify the company, the accounting impropriety or illegality, how it was detected, the outcome, and propose a strategy that might have prevented the situation. Indicate how the strategy should be implemented.
1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a
Illustrate what is the present equivalent of the overhaul expenses at time 0. Illustrate what is the yrly equivalent expense during only yrs 5-13.
In multiple regression analysis, explain why the typical hypothesis that analysts want to test is whether a particular regression coefficient (B) is equal to zero (H0: B = 0) versus whether that coefficient is not equal to zero (H1: B ? 0).
Assume that the US is Home. For each of the transactions below (including the paymen for each), is it more likely to lead to a Current Account (+) or a Financial Account (-) or neither on the US BOP? Cuban tourists take a whale-watching cruise out o..
How can reserve requirements, discounting operations and open market operations be used to increase money supply an add if the ecomoony is in recession?
Sam has preferences for consumption goods (C) and time spent on leisure (L). The utility function is u(C,L) = CL. The household also has a home production technology summarized by a production function. How much time will Sam spend in leisure? How ma..
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