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Matt is a 25 year old engineer, and his salary next year will be $60,000. Matt expects that his salary will increase at a steady rate of 5% per year until his retirement at age 65. If he saves 10% of his salary each year and invest these savings at an interest rate of 9%, how much will he have at his retirement?
Explain how can rational thinking the above behaviors. How do your thoughts impact, if at all, your opinion of the theory.
Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
When there is deflation, as in inflation of -1%, the real interest rate that Herb pays (as compared to what he expected to pay): increases, so Herb feels poorer decreases, so Herb feels richer increases, so Herb feels richer decreases, so Herb fee..
Owners of common stock: are not actually part-owners of the corporation are allotted one vote per share owned at annual stockholder meetings are guaranteed a certain dividend payment each year.
Be sure to describe the two step method used in FASB 52 and how highly inflationary economies
If the marginal product of capital net of depreciation equals 10 percent and the rate of population growth equals 2 percent what must be the rate of technological progress for the economy to be at the Golden Rule steady state?
Government imposes excise taxes on goods which have inelastic demand, such a cigarettes.
Grade school- education is said to yield a beneficial externality because all of us benefit from interacting with people who know basic reading and writing.Assuming that this is true,make a case for providind education from taxes.
Consider a market that consists of n = 2 identical firms. Each firm produces output at a constant average and marginal cost of 2. The market demand curve in this industry p = 20 - 2Q, where Q is market demand and p is price. Firms will choose outp..
What nominal interest rate per year is equivalent to aneffective 15% per year, compounded semiannually?
A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Barney and Lynn, who were overheard gloating (for all to hear) about how well they had done with their mutual fund investment.
Explain how would the edgeworth box change. How would the production possibilities frontier change as a result
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