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Jean invests $1,000 into her employer's retirement plan on 31st birthday; also she continues to make annual $1,000 payments for 10 years. So her total contribution (principal) is $10,000. Jean then stops making payments into her plan plus keeps her money in the savings plan untouched for 25 more years. Doug creates putting money aside on his 41st birthday as he deposits $1,000, and he continues these payments until he gets to be 65 years old. Doug's contributed principal amounts to $25,000 over this period of time. If Jean's and Doug's retirement plans earn interest of 6% per year, illustrate how much will they have accumulated principal plus interest when they reach 65 years old? What is the moral of this situation?
Suppose that, the economy initially at full-employment, the cantral bank increases the money supply. b. How are output and unemployment connected?
An athletic director was once quoted as saying that he felt his school spent too much on athletics but that it could not afford to stop.
Based on your understanding of the gains from trade, do you think which these payoffs actually reflect a nation's welfare under the four possible outcomes.
When would it make sense for a factory that is losing money to remain in operation
Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax,
Illustrate what effect does the current supply and currently demand have on this product.
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
What must she/he expect to happen to short term interest rates over the coming year.
Describe capital and labour productivity in engineering context and pharmaceutical industries in India. Discuss whether Indian Consumer goods industry is growing at the cost of future profitability.
What would happen to the value of gold if people discovered that it could easily be made at home from inexpensive materials
Explain how this may be related to the problem of adverse selection. What could banks do to try to reduce this problem?
Management predicts that if the strike is successful the cost of worker will increase to $100 per day.
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