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If the government reduced spending on everything, except military spending, the deficit would be reduced stimulating the economy and creating full employment. How is this true?
After the September 11th attacks, one division of the Pentagon began to set up a Policy Analysis Market (PAM), a prediction market for political events in the Middle East. Suppose Chad believes that the price of oil will be higher in the future and b..
The timeline should also reflect that it costs $2,000 for the loan origination fees. 4. What is the rate of return on your investment now? use excel.
Identify and briefly explain key macroeconomic issues that stand out as important to consider in business decisions.
The demand for coffee is given by the following equation, where QD stands for the quantity demanded and P stands for price. At what price is quantity demanded equal to zero (this is, graphically, the vertical intercept of Demand)? What is the slope o..
An alternative requires $60000 to be paid over the course of year 1, $75000 over year 2, and $40000 over year 3. All values are in constant dollars. Using the tables in the chapter, compute the NPV of this alternative.
What would happen to the budget deficit if the: GDP growth rate jumped from 1 percent to 3 percent? Inflation increased by 2 percentage points?
Suppose that you save all of your money to spend next year. Explain how much will you be able to spend next year. How much will you be able to spend this year.
Carrboro has three equal-sized groups of people: (1) type A people consistently prefer more police protection to less; (2) type B people prefer high levels of police protection to low levels and they prefer low levels to medium levels; Which types of..
Your company just purchased 4 forklifts for their warehouse operations for a total of $115,000. They want to depreciate this personal property over a period of 8 years. Use the Double Declining Balance (DB) method to determine the book value at the e..
Explain the concept of countertrade. When does counter trade make sense? How does counter trade help solve the nonconvertability problem?
A monopolistically competitive firm has the following short-run inverse demand and cost schedules for a particular product: What would happen to the firm’s demand and profit (or loss) as the firm moves toward the long run? Suppose in the long run, th..
Given your understanding of bond markets, what signals is the the bond market sending in response to the downgrade. Is this problematic.
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