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Julie wins a $15 million lottery payable over 30 years. In years 1 through 4, she receives annual installments of $500,000. At the beginning of year 5, Julie sells her right to receive the remaining 26 payments to a third-party for a lump-sum payment of $8,900,000. How much does Julie include in income each year?
Use the IS-LM model to determine the effects on the general equilibrium values of the real wage, employment, output, the real interest rate, consumption, investment, and the price level. For full credit you must draw the graph and explain in words.
Compute the expected utility of each project and identify the preferred project according to this criterion.
Choose a macroeconomic issue of current interest for which you can find two editorial or op-ed columns from national or international newspapers or magazines that take differing positions on the issue.
Ellucidate what happens to the price of a bond that pays a fixed percent of the face value every year when interest rates in the economy increase.
When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
AMS recently instituted an in-house recycling program. The benefits of this program include not only the benefits to the environment of recycling but also the goodwill generated by AMS's leadership in this area.
What distinguishes money from other assets in the economy? What are demand deposits, and why should they be included in the stock of money?
Illustrate how you would use the rest of the information above to better assess the impact of the influx of immigrants.
Demand for refrigerators is often explained as cyclical and very sensitive to refrigerator prices & interest rates. Given these characteristics, explain the effect of each of the following in terms of;
A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restuarant has received rave reviews and has lines of diners waiting for tables most nights.
Evaluate the following statement: "I am a manager in a governmental agency. I have no control over compensation policy. All workers are paid the same salary (everyone is paid according to a set schedule and their remuneration cannot be adjusted by..
Discuss the necessary conditions to make price discrimination work and the best practices to use price discrimination to maximize profits while avoiding price wars. In your discussion make evident the challenges of the strategy
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