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Chris Ricci has several credit cards, on which she is carrying a total current balance of $12,500. She is considering transferring this balance to a new card issued by a local bank. the bank adervtises that, for a @5 fee, she can transfer her balance to a card that charges a 0% interest rate on transferred balances for the first 9 months. Calculate the fee that Chris would pay to transfer the balance, and describe the benefits and drawbacks of balance transfer cards.
Consider a two-period economy with a single commodity (say leisure): X_1 is the consumption of leisure in period 1, and X_2 is the consumption of leisure in period 2. When Peter evaluates consumption streams, he cares only about the best time in his ..
Suppose you are a manager of a watch making firm in a competitive market. Your cost of production is given by C=200+2Q2 where Q is the level of output and C is the total cost.
The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar. a) Over this period, would you expect exports from the US to Iceland to ..
HMK is a handbag making company. They have a forecasting team which provides them thedemand forecast for their product. The report provided by the forecasting team indicates the demand forecast for the next 6 months. It takes a handbag maker 15 minut..
Explain why industry expansion in response to rising prices will put even more upward pressure on price in the cattle price cycle. What happens to finally cause the turnaround at the peak of the cattle price cycle?
Elucidate how much does the total amount of deposits in the banking system increase. By elucidate how much does the money supply increase.
illustrate the actions the firm took in a certain countries to achieve this, choose a firm which became an MNE with location advantages and depict the steps the firm took in a specific country(s) to accomplish this, select a firm that became an MN..
You decide to open a retirement account at your local bank that pays 7%/year/month (7% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end.
Why would workers be more likely to accept a real wage cut that arises from increase in CPI than a nominal wage rate? Does inflation influence a workers wage rate?
Bob and Ray buy only two goods, ice cream and root beer. They both get their root beer at Root Beer City, where they pay $1 a bottle. Bob is indifferent between the baskets (1, 3) and (2, 2). Ray is indifferent between the baskets (2, 2) and (3, 1). ..
If a firm’s short-run average total cost function and its short run variable cost function satisfy: SAC(200, w, r, K) = 16, SAVC(200, w, r, K) = 12, SAVC(400, w, r, K) = 16, at a specific wage w, a specific rental rate r, and specific fixed capital l..
Give examples of government regulations that work and examples of government regulations that do not work. Explain why in each case. How does politics affect economic policies? Is it negative or positive?
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