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It is May 1. You have just bought $2000 worth of furniture. You will pay for it in 24 equal monthly payments starting at the end of May next year. Interest is 6% nominal per year, compounded monthly. How much will your payments be? Using compound interest tables.
Illustrate what fiscal policy or policies would be the best to get it out of the recession
IRA(s) were first offered starting in the 1980s. If we consider the stock market as a market where investors loan money to corporations (by purchasing stocks), what effect do you think the introduction of IRA(s) would have on the supply.
Suppose a new technology is developed that increases investment demand in both a closed economy and in a small open economy that are in other ways identical. Holding other factors constant, will the quantity of investment spending increase more
Suppose that Bank of America makes the maximum loan they can from the funds you deposited. Use a T-account to show the initial effect on Bank of America's balance sheet from granting the loan. Also include in this T-account the transaction
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
Show analytically and show graphically that, in Keynesian consumption function, the average propensity of consumption is always bigger that marginal propensity
What type of market structure is OPEC? What are some important issues that OPEC must confront in their efforts to control the price of oil?
Identify the normative policy school (Keynesian, New Classical, Supply Side, Monetarist, or Mainstream) which most closely represents your own normative policy views.(let's favor Keynesian policy) Defend your position and offer at least one counte..
Rent Payment, Food, Utilities, and All Other. Your program should add the amounts, display the total, and compute and display the percentage for each category. Dollar amounts should be displayed with two decimal places
In a monopolistically competitive marketplace, a firm has market power because it produces a differentiated product. This means that the firm earns positive economic profit in the long run.
What is the equilibrium price and quantity. Illustrate what will sales be if the price is dropped to $20.
Explain the difference between saving and investment as defined by a macro economist. Which of the following situations represent investment? Saving? Explain.
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