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An increase in the interest rate is expected to cause the optimal level of human capital investment for an individual to:
A. rise.
B. fall.
C. remain unchanged.
D. None of the above is correct.
q1. the simple is-lm model predicts which cutting the governments budget deficit will reduce output in the short-run.
In the small town of Springfield, Duffman observes that the price of beer has fallen. Duffman concludes that the total amount of money spent buying beer has to fall since the price of beer is lower.
Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model: The destruction of 30% of the capital stock because of a natural disaster. A permanent incr..
Elucidate which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
q1. illustrate what are the basic steps in solving for walras equilibrium with two consumers and two commodities given
Divide the Banzhaf power index by the number of votersin state. Are votersin small states or are votersin big state more powerful, according to this measure.
You take your first job out of college as an engineer with a salary of $58,000 per year. You decide to contribute $2,000 into your 401K retirement plan at the end of your first year (when you are 22 years old). If you continue to contribute annually,..
Business competition encourages efficiency of production and leads to improved product quality.
Elucidate why your answer to part (a) is an example of marginal analysis also optimizing behavior in general.
A monopoly producing a chip at a marginal cost of $6 per unit faces a demand elasticity of ?2.5. Which price should it charge to optimize its profits?
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $943.40 offers YTM = 6%, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $873.44 and o..
Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Which gives Marginal Cost MC= 0.5+4Q. Currently t..
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