1. Why did Leontief use linear algebra techniques to create his model? Can you think of alternative methods?

2. What are the main strengths of his model?

3. Does it have any limitations (that you can think of)?

4. How might the Input-Output model be useful in the real world? (In other words, would anyone except an Economist be interested in the results?)

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Leontief input output model-real world applications : Why did Leontief use linear algebra techniques to create his model? Can you think of alternative methods? What are the main strengths of his model? |

Accumulated depreciation for the asset : Moped, Inc. purchased machinery at a cost of $22,000 on January 1, 2011. The expected useful life is 5 years and the asset is expected to have salvage value of $2,000. Moped depreciates its assets via the double-declining balance method. |

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Straight-line amortization problem : The annual interest rate is 8%. What is the amount of taxable interest income that Karen should report for 2010, and the adjusted basis for the bonds at the end of 2010, assuming straight-line amortization is appropriate? |

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