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Suppose Bob considers borrowing $100 from Sheila at a 10 percent interest rate. They both think that a 4 percent real interest rate would be fair.
a. What was the inflation rate they both expected?
b. If the inflation rate turned out to be 8 percent, how much was the real interest rate? Who gained and who lost from this transaction, and how much because of unexpected inflation?
c. If there was a capital gain tax of 30 percent, what is the after-tax real interest rate, with the inflation rate of 8 percent?
Which of these two strategies do you think would have the greatest impact on sales volume. Explain
Illustrate what is the capital account balance. Illustrate what is the financial account balance.
Illustrate what is the industry's profit maximizing output level. Is the organization in long-run equilibrium.
Illustrate what we didn't realize at the time was that our fixed costs were underestimated by at least 30 percent. This means that we will have to adjust our price upward by at least.
How will this technological advance impact production and pricing plans. How it will impact BlackSpot's profit.
Draw the US demand and supply curves for oil and indicate how much is imported in barrels of oil and its value per year.
Use indifference curve analysis to show how the Social Security pension system can reduce annual consumption for some workers who have a strong preference for current versus future consumption.
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
Elucidate briefly in what way the HOV, or factor content theorem, extends the standard HO model.
Explain how the economy can adjust in the long run to restore full-employment equilibrium. Draw a graph to illustrate this adjustment process.
q.you are the ceo of a fortune 500 company. you have two objectives1. invest 5 million cash on hand short term
What is the evidence of wrongdoing here How does business use politics here Is this government failure Is this market failure Who benefits and how Who loses What is the role of the media
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