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1. How much money would be accumulated in 5 years with an initial deposit of $10,000, if the account earned interest at 12% per year for the first 3 years and at 15% per year for the last 2 years?
2. On the day your daughter is born, you deposit $1,000 in a college savings account that earns 8% compounded annually. On each of her birthdays thereafter, up to and including her 18th birthday, you deposit an additional $1,000. How much money is in the college account day after her 18th birthday?
How come inflation does NOT increase if the money supply increases during a liquidity trap? My guess is that if people hold more cash, they would spend more. Given that during a liquidity trap the economy is maxed out and cannot increase output, the ..
Which of the following is most likely to cause variation in American household spending patterns?
Explain how each of the following affects the demand for health care (that is, would it increase demand or decrease demand?): (1) physician sovereignty (the doctor controls the treatment), (2) third-party payment (health insurance), (3) defensive med..
Based on costs and revenues above, which should you do. Elucidate and show any relevant calculations.
Given the supply curve for radiographs by a radiology practice, predict how this curve will shift (supply will increase or decrease) if the following occur:
A consumer with convex indifference curves moves along her budget line, closer and closer to the horizontal axis. As she is moving
Consider a perfectly competitive firm's marginal revenue product of labor curve shown in the diagram. Using the line drawing tool, draw a new line that shows the effect of a decrease in the demand for the product produced by this fm. Label this li..
Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage ,employment ,output ,real interest rate,consumption ,investment and price level. An influx of working age immigrants increases la..
Suppose that there is a credit market imperfection due to asymmetric information. In the economy, a fraction b of consumers consists of lenders, who each receive an endowment of y units of the consumption good in the current period, and 0 units in th..
A bank account currently pays interest at a rate of 3% per year. The current inflation rate is 2% per year. If I invest some money in the bank account, then what is the real interest rate that I am earning? If I decide to withdraw the entire balance ..
In the short run ,lowering the federal funds rate shifts the aggregate demand curve----------so that the real GDP---------and the price level --------------
An energy drink company is interested in advertising during a made-for-television movie using subliminal advertising in which logo images are shown only very briefly, for periods of just several milliseconds at a time. Which of the following is the s..
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