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The president of the US announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes him.
If the public believes the president's program will be successful, interest rates will fall. The president's announcement will lower expected inflation so that the expected return on goods decreases relative to bonds. The demand for bonds increases and the demand curve, Bd, shifts to the right. For a given nominal interest rate, the lower expected inflation means that the real interest rate has risen, raising the cost of borrowing so that the supply of bonds falls. The resulting leftward shift of the supply curve, Bs, and the rightward shift of the demand curve, Bd, causes the equilibrium interest rate to fall.
Derive an expression for average cost. Derive an expression for marginal costs. Is there any range of production characterized by scale of economies. Elucidate what production level are scale economies exhausted.
The typical right wing/free market argument that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking capitalists, rather than being owned by the government..
Do you think the benefits of government regulation exceed the costs? In what areas, if any, do you think the costs exceed the benefits? Cite an example of a company's efforts to circumvent government regulations. Is the use of loopholes ethical?
Compute another firm in a competitive industry that faces a market determined price of $25. the firm is producing 10,000 units of output, and average total cost, which at its minimum value, is $25. Answer part a for this firm
Assume Doughnuts R Us chooses to produce 150 doughnuts. What is the number of doughnut shops in the market.
Is it reasonable from an economist's viewpoint to minimize the role of the government in accordance with Nozick's moral argument.
Identify opportunity cost of increase divestment. What will happen to future production possibilities if investment increases.
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
Identify what FIDO stands for and how 3M puts FIDO into practice. Assess whether FIDO’s approach could work for other companies or if it is unique to 3M and the products they produce. Write three pages on whether 3M’s specific practice of hiring loca..
Good-faith bargaining generally refers to the duty of the parties to meet and negotiate at reasonable times with willingness to reach agreement on matters within the scope of representation; however, neither party is required to make a concession or ..
The future of cities in the united states and in other countries will be determine by their abilities to benefit from the _____________ and to minimize or counterbalance the __________________.
Assume that a consumer can buy only two goods, A and B, and has an income of $100. The price of A is $10 and the price of B is $20. Illustrate what is the slope of the budget line if A is measured horizontally and B is measured vertically.
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