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Nicki lives in two periods and has a utility function u(c1, c2 ) = c1xc2, where c1 is her consumption in period 1, and c2 is her consumption in period 2. Nicki's income in period 1 (I1) is $400, and her income in period 2 (I2) is $220. She can borrow or lend at an interest rate of 10%.
Now suppose Nicki has the same endowment (I1,I2 ) in both periods. But the interest rate rises to 50%. In the same graph, draw Nicki's new inter temporal budget constraint.
What three factors determine whether two economies with separate fiscal and monetary authorities should form a currency union.
A local landfill currently charges $100 per half ton load of waste to dump. The marginal costs to the landfill of operating the dump are about $60 per half ton load of waste. Assuming the landfill pricing is dynamically efficient, what is the MUC of ..
Illustrate what does GDP income leave out. Should a country meet additional quantifiable goals before being considered "developed".
Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats ke..
compare 2 policies to curb pollutionqs10p amp qd100-10ppollution costs 2.50galloncalculate price quantity and social
Describe the difference between nominal, effective and real interest and calculate what is owed after 5 years for the following example. 10% interest on $100 over the course of 5 years. Where relevant, the compounding period is 1 year. Inflation is 5..
Develop an online service for IT training that includes scheduled as well as self-paced courses. The training service will be initially web-based but the architecture must have the option that different front-ends like applets, web services, or ot..
The Sarbanes-Oxley Act provides for the establishment of the _____________ to over see audits of public companies. This will be done to protect the interests of shareholders and investors.
Affirmative action is one of the most controversial topics in employment law. How affirmative action is often presented in the media? How similar is that portrait to the one presented in Johnson v. Transportation Agency, Santa Clara County ? When are..
Think of an industry that pollutes the water and has access to variable technology for reducing that pollution. Explain the impact of each of the following, other things constant, on the optimal level of water quality:
Discuss the conditions that led to the development of global markets. How can the increased interest in international marketing on the part of U.S. firms be explained?
Suppose that the US current account deficit must be reduced. Explain in terms of CA ≈ (S – I) + (T – G) what must be done to reduce the current account deficit. Why will this be difficult? (Hint: It may be helpful to think about the household that ha..
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