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The auto of your dreams costs $20,000 today. You have found a way to earn 15% tax free in a savings account. If the cost of your dream car is expected to increase 10% every year, how much must be deposited into the savings account to provide for the purchase of the auto in 5 years?
Do you think we, as customers will be more price sensitive also price conscious. What do you think this means for luxury goods.
How much profit does an individual producer make in a month? Is this a long-run equilibrium? If the answer is yes, simply state that it is a long-run equilibrium. If the answer is no, explain whether or not the equilibrium price will rise or fa..
Assume that some of these drugs are legalized so that anyone may sell and use them.
Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates?
Briefly explain how each of the following changes the money supply.a. the central bank buys bonds b. the central bank raises the discount rate
Winston Churchill once said that democracy is the worst form of government except for all others. What did he mean in microeconomic terms Would a more viable democratic system add to or reduce the ability of government.
Discuss the relationship between inflation and interest rate. Do an international relationship exist, yes no HOW?
What is the value of the money multiplier and What are the nominal values of deposits, currency, and reserves
From the following information, find the marginal propensity to consume, compute the expenditure at each level of GDP, and find equilibrium GDP:
Assume the graph below represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. Draw the marginal revenue function for this firm.
A consumer of two goods faces positive prices for both goods and has positive income. Her preferences over consumption of good 1 and good 2 are represented by the following utility function: u(x1; x2) = 1 - (x1 4)^2 - (x2 3)^2
Suppose that society decided to reduce consumption and increase investment. A) how would this change affect economic growth B) what groups in society would benefit from this change What groups might be hurt
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