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Sacramento Cab Company owns several taxis that were purchased for $25,000 each 4 years ago. The cabs' current market value is $12,000 each, and if they are kept for another 6 years they can be sold for $2000 per cab. The annual maintenance cost per cab is $1000 per year. Sacramento Cab has been approached about a leasing plan that would replace the cabs. The leasing plan calls for payments of $6000 per year. The annual maintenance cost for each leased cab is $750 per year. Should the cabs be replaced if the interest rate is 10%? After-Tax
Use the green line (triangle symbols) to show the impact of this additional change in the exchange rate on the economy.
Lets denote the price of a nonmaturing bond (called a consol) as Pb. The equation that indicates this price is Pb = l/r, where l is the annual income the bond generates.and r is the nominal market interest rate. What happens to the bond’s price if th..
Why should this policy be undertaken under conditions where economy is at some GDP level less than full employment level? You may use a long run aggregate supply curve to bolster your argument here.
If there is no tariff, explain how much does customer pay for a pound of coffee. Illustrate what is the quantity demanded.
The reason economists use the midpoint method to compute elasticity is that:
What are the advantages and disadvantages of using an expansionary monetary policy in a recession compared to using fiscal policy? The question is specifically about the advantages of monetary policy compared fiscal policy in a recession. What are th..
Research funding sources. Leave no stone unturned, from micro financing and its details to grants for woman-owned businesses. Post links, make recommendations—let’s all work to gather funding sources!
After a long period of negotiations, it would appear that the United States and Iran have come to an agreement on the timing and scope of Iran's development of nuclear weapons. Mention and discuss in detail two reasons why the government of Israel th..
Assume our typical Cobb-Douglas production function, in per capita terms,y=Ak^(1/3).Also assume capital accumulates such that change in kt+1=Sy-dk. What is the solution of the Solow model for consumption per person in the steady state, c*=C*/L*? How ..
Large-scale Russian farms have undergone some major changes, and these changes come in several forms. Which of the following is the most radical form of large-scale farm change that offers the greatest potential for efficiency improvements?
In the long run, there will be no unexploited scale economies (excess capacity) in
Which of the following statements is sequentially correct?
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