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1. Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nom- inal terms and that the CPI is 100 in 2011 and 106 in 2012.
a. Evaluate the change in costs over the period in real terms, first in 2011 dollars and then in 2012 dollars.
b. Are your answers the same? Explain why or why not.
If you are a manufacturer do you necessarily want the gray market to cease to exist? Why or why not? How about if you are a franchised dealer?
for which of the two bonds in each example would you expect to generally pay the higher interest rate? explain why. a
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What is the most important factor leading to rising health care costs in the United States since 1980? a)The increased use of expensive medical technology b)Teh aging U.S. Population
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Suppose that management and labor are bargaining over the distribution of excess profits amounting to $200 per worker. Suppose that failure to reach an agreement an agreement reduces management's share of the surplus by 5 percent per round and reduce..
a manufacturer is considering purchasing equipment, which will have the following financial effects: Year Disbursements Receipts If money is worth 6%, should he invest in the equipment?
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which will cause a larger short run increase in prices; an anticipated or unanticipated increase in aggregate demand? will they cause the same increase in prices in the long run?
Research this issue and write a brief memorandum
In the late 1990s, several East Asian economies had their currencies pegged to the U. S. dollar. Suppose there is an economic boom in the United States that leads to an increase in U. S. interest rates.
A firm manufactures and sells high quality business priters and ink toners. Each printer sells for $650 and each toner for $100. The average user keeps the priter for 5 years and consumes 4 toners every year. in response to a recent significant drop ..
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