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Q1. Illustrate what is a random walk? Explain how is Hall's random-walk model of consumption related to the life-cycle (LCH) and permanent income hypotheses (PIH)?
Q2. To increase a company's performance, a manager suggests which the company needs to increase the value of its product to customers. Describe three ways in which this advice might be incorrect. Q3. A. Illustrate what is Tobin's q, and illustrate what does it have to do with investment? Explain how Tobin's q is can be related to the neoclassical model of business fixed investment?
B. Assume a loss in the export sales reduces GDP which causes a recession. Discuss which Explain how drop in the export sales sets in an ongoing recession using accelerator model.
Assume the economy starts out at point A. After that, the public anticipates that the Fed will use expansionary monetary strategy to shift the AD curve from AD1 to AD2.
Discuss the difference between them and explain the managerial actions that can influence the firm profitability.
Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace.
Calculate the output level and price that maximizes total revenue.
It is always better to hire a more qualified and productive worker then a less qualified and productive one regardless of cost.
Imagine you are a manager for the good or service used above. From the results of the regression equation, suggest strategies to either maintain demand.
Calculate whole expected convenience from each restaurant option and also compare?
Explain how could those same inventory systems quickly transmit large demand shocks directly to sudden, deep recessions.
Assume that every driver faces a 1% probability of an automobile accident every year. An accident will, on average, cost each driver $10,000.
What is the impact of opening trade on the real rental on capital.
Show graphically the effect on the supply and demand for Bonds in a deflationary period.
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
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