Reference no: EM131099390
Recent concerns about global warming have lead firms to expect a higher depreciation of their capital in the future and households to expect lower levels of future income.
Explain, with the help of a graph, what happens to a firm’s desired level of future capital for any given level of the expected real interest rate.
Explain, with the help of a graph, what happens to the desired level of investment for any given level of the expected real interest rate and to the desired investment curve.
Explain what happens to households’ optimal level of current and future consumption and savings everything else constant.
Explain, with the help of a graph, what happens to the desired savings curve.
Assume that the goods and services market is initially in equilibrium. Explain, with the help of a graph, what happens to the equilibrium real interest rate, level of savings and investment. Discuss all possibilities.
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The supply and demand curves for playing cards
: The supply and demand curves for playing cards is given by: QD = 20 – P QS = 5 + 2P a. Solve for the equilibrium price and quantity using the graph paper provided. b. Solve for the equilibrium price and quantity, algebraically. c. Calculate the consu..
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Give real life example of perfect competitive market
: Give a real life example of a perfect competitive market or close to perfect competitive market. Discuss why you think this is a perfectly competitive market, and what assumptions of perfectly competitive market it satisfies.
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Same minimum efficient scale of operation
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Gold holdings are what fraction of the paper money
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Recent concerns about global warming
: Recent concerns about global warming have lead firms to expect a higher depreciation of their capital in the future and households to expect lower levels of future income. Explain, with the help of a graph, what happens to a firm’s desired level of f..
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Why is the demand for water price-inelastic
: Although water is essential to life no matter where one lives, the demand for water differs across regions. In one study it was found that the price elasticity of demand for water in all regions of the United States ranged from 0.39 to 0.69. Why is ..
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What is the real user cost of the building
: A firm just purchased a building that cost $5 million. The nominal mortgage interest rate is 5% per annum, mortgage interest payments are tax deductible, and the firm is in a 20% tax bracket. The expected inflation rate is 3%. Maintenance expenses ar..
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About the reserve ratio
: If the reserve ratio is 10 percent and a bank receives a new deposit of $800, which of the following will this bank most likely to do?
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When the price of product is increased
: When the price of a product is increased 15 percent the quantity demanded decreases 10%. we can therefore conclude that the demand for this product is:
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