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Other things the same, a decrease in the U.S. interest rate a. shifts money demand to the left.
a. shifts money demand to the left
b. makes the U.S. dollar appreciate.
c. increases the opportunity cost of holding dollars.
d. induces firms to invest more.
Which of the following shifts aggregate demand to the left?
a. an increase in the price level
b. an increase in the money supply
c. a decrease in the money supply
d. a decrease in the price level
Harper Engine Company needs $600,000 to take a cash discount of 1.5/10, net 60. Abanker will loan the money for 50 daya at an interest cost of $12,100. What is the effective rate on the bank loan? How much would it cost (in perecentage terms) if Harp..
If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good.
Discuss how elasticities should be used in pricing decisions. If you were responsible for setting the price of these volumes, what would you choose and why.
Assume I won 100 million dollars in a lottery that pays installments of 20 million dollars a year for five years or a lump sum of less than 100 million dollars. If I take the installments, my first installment would come the day I claimed my winnings..
A country that has never had its own currency has formed a central bank and put you in charge of developing money.
Over the last year your boss has noticed that it would be useful for your firm to understand how consumers behave when variables in the market change and how these changes affect the total revenue for your product. You have been asked to do an analys..
Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..
Consider an economy in which people wish to hold bank checking deposits worth a total of 5 million goods and currency worth 2 million goods in every period. In addition there is a stock of un intermediated capital worth 10 million goods. Find the tot..
Dane decides to give up a job earning $100,000 every year as a corporate lawyer also converts the duplex that he owns into a UFO museum had been renting the duplex for $20,000 a year.
This unit has talked largely about economies of scale at the plant or unit level. What do you see as the difference between the unit level economies of scale and the firm multiple plants, movie theaters, restaurants, etc. Is there a clear distinction..
1. Develop a simple regression model with paint sales (Y) as the dependent variable and selling price (P) as the independent variable. a. Show the estimated regression equation.
At what price of food in terms of manufactures would A and B respectively supply food? Would trade take place between A and B in David Ricardo’s world? How many manufactures could B supply?
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