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You win a lottery with a prize of $1.5 million. Unfortunately, the prize is paid in 10 annual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8%.
Consider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export subsidy affect the domestic price of steel
Explain why would you expect the inflation rate to accelerate if the actual unemployment rate declined.
Determine what are some of the sources companies can turn to for venture capital funding?
Case study: rent ceilings in New York City. Suppose the demand and supply curves for rental housing units have the typical shapes and that the rental housing market is in equilibrium. Then, government establishes a rent ceiling below the equilibri..
Explain in detail how a decrease in consumer demand for a product will result in less of the product being produced and in fewer resources being allocated to its production.
Suppose we consider the woman's labor market experirnce EXPER and its square EXPER2 , to be instrumental for WAGE . Explain how these variables satisfy the logic of insrumental variables
Tobacco production is one of the more heavily subsidized industries in the United States. Suppose that as a result of intense lobbying from health-related concerns, Congress repeals the tobacco firms subsidies. Which of the scenarios would likely ..
You have the alternative of leasing an asset for $100,000 a year, with payments to be made at the end of each year of use. This lease cannot be cancelled.
Explain how would you justify the long-term nature of your contract with CGI Group.
Calculate the equilibrium level of real GDP. Does the government succeed in increasing real GDP and calculate the equilibrium level of real GDP.
Suppose the government decides to increase taxes by $20 billion to increase Social Security benefits by the same amount. How will this combined tax transfer policy affect aggregate demand at current prices
I have a website where I offer cash rebates for purchasing stuff. For instance, if someone purchases a pair of shoes, I give them a $10 cash rebate.
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