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Mr. Bird has $120 income this year and zero income next year. The market interest rate is 10% per year. Mr. Bird also has an investment opportunity in which he can invest $60 today and receive $90 next year. Suppose Mr. Bird consumes $40 this year and invests in the project. What will be his consumption next year?
Assume a country decides it will either dollarize or create a currency board. Of these two options, why might dollarization be a better choice.
The government imposes a fixed fee per year on each firm operating in a competitive market.
Suppose the government imposes a tax of $1 to reduce tea consumption and raise government revenue. What will the newequilibrium quantity be? What price will the buyer pay? What amountper kilogram will the seller receive? How much is the inefficien..
You have recently seen a credit card advertisement stating that the annual percentage rate is 12 percent. If the credit card requires monthly payments, what is the effective annual rate of interest on the loan?
On Tuesday nights, a local restaurant has a kid's meal special. Nina's son, Braden likes the restaurant's chicken nuggets, but Braden seems to be growing bigger every day and the kid's meal is usually not enough. The restaurant does allow for addi..
(a) Calculate the firm's inverse demand function. (b) Calculate the firm's marginal and average cost functions.
Write the macroeconomic issue about the lack of growth of Malaysia, write the reason why this issue happened, the impact of this issue (good influence and bad influence), and must have the reference to support your answer
MacKenzie Company is planning leasing a new asset. The lease would run for eight years and require eight beginning-of-year payments of $100,000 each.
Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve? Explain why the shift may be higher or lower than the or..
Player 1 makes the first offer of how to split a surplus of 1, followed by either acceptance or rejection of this offer by player 2. Acceptance ends the game, and the surplus is divided as agreed. If player 1's offer is rejected, player 2.
According to the Solow growth model, how would a permanent increase in energy prices affect capital per worker and consumption per worker in the long run (that is in the steady state) Explain using a graph. b. In an endogenous growth model
Illustrate what are the limits to long-term economic growth in the US.
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