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The Dade Corporation is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The Bank Requires a 20 percent compensating balance. Waht is the effective rate of interest? What would be the effective rate if the company were required to make 12 monthly payments to retire the loan? The Principal, as used in formula used below refers to the fund the firm can effectively utilize (amount borrowed-compensating balance)
Effective rate on installment loans= 2X Annual no. of payments x interest(Total no. of Payments +1) x Principle
Illustrtae what is the final impact of expansionary fiscal policy on the price-level and real output.
Many cities regulate taxi industry by licensing cabs. These licenses are often called medallions because they are issued in the form of a metal shield that must be affixed to hood of the cab, where enforcement officials can easily see it.
In 2003 the state of Arizona discuss that there was a shortage in correctional officers. Determine how correctional officers' wages are calculated.
Discuss completely all forward exchange transactions that take place when the contracts are made. Describe what actually takes place three months later.
Suppose the cross price elasticity of demand among peanut butter and grape jelly is negative.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
Would an attempt to decrease the budget deficit not increase it. Does today's deficit not create tomorrow's surplus.
Utilizing an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment
Elucidate how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation.
Illustrate what assumptions is the theory based, and how plausible are these assumptions.
Plot both together on a supply-demand graph. Calculate the equilibrium P and Q, and show them on your graph as well. Also calculate CS (consumer surplus) at the equilibrium.
How does the free rider problem explain why telephone companies are usually successful in getting permission to raise their rates?
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