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A sportswriter wants to know how strongly the residents of Indianapolis, Indiana, support the local minor league baseball team, the Indianapolis Indians. He stands outside the stadium before a game and interviews the first 30 people who enter the stadium. Suppose that the newspaper asks you to comment on the approach taken by this sportswriter in performing the survey. How would you respond?
Suppose the one-year interest rate on Swiss France is 10% and the US Dollar interest rate is 12% and the current $/SF spot rate is 0.8. What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forwar..
If summer's supposition is correct, then we should expect for wealthier countries to have cleaner environments other things equal.
What are some of the costs associated with anticipated inflation? Why do these differ from those associated with unanticipated inflation?
The Equation of Exchange is given as MV = PY , where M= the nominal money supply, V= the velocity of money, P= the price level and Y=real GDP. What is the Monetarists’ argument (based on the quantity theory of money) about an increase in M? Explain a..
What is an absolute and comparative advantage? Give an example where you have an absolute, but not a comparative advantage with someone else.
A manufacturer must decide whether to extend credit to a retailer who would like to open an account with the firm. Past experience with new accounts indicates that 45% are high risk, 35% are moderate risk and 20% are low risk customers. Draw the deci..
In 2014, Thomas Piketty came out with a popular book, “Capital in the Twenty-First Century.” In it was a model not unlike the Solow growth model, discussing the long-run implications for the capital-to-income ratio, k/y. The traditional Solow growth ..
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Address the following: Price elasticity of demand refers to the percentage change in demand resulting from a percentage change in price. Please review the definition of relative inelasticity and relative elasticity. These terms refer to how much dema..
Many years ago, the traditional mortgage loan structure specified:
What is the smallest acceptable annual income from a project which has a $84,127 investment cost and a $71,552 salvage value is the life is 15 years and the MARR is 15%?
Elucidate why would new textbook sales fall in the yrs subsequent the release of the latest edition.
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