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Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 3X1/2 Y1/2
In Addition, Suppose consumption bundle A consists of 10 units of X and 10 units of Y, and consumption bundle B consists of 20 units of X and 5 units of Y.
Does consumption bundle “A” lie on a higher/lower/same indifference curve than consumption bundle “B”? Show computations and graph.
Compute Mary’s Marginal Rate of Substitution for X and Y at consumption bundle A. What does this number tell you? Show using computations and graph.
William owns just one ship. Ship is worth 200 million dollars. The probability the sink will ship is .02. His total wealth including the value of the ship is 225 million. U(W) is equal to the squre root of W. What is the maximum amount that william w..
If each of the firms sets its own output rate to maximize its profits, assuming that the other firm holds its rate of output constant.
The cost of running the government program ( assuming no storage costs). Illustrate what is the total price of the program to consumers.
Calculate the equilibrium interest rate by setting the demand for central bank money equal to the supply of central bank money.
The operating instruction issued to the European Central Bank is to use monetary policy to focus entirely on targeting the inflation rate. If it follows those rules what would it’s Taylor rule equation look like? Be specific.
q1. discuss one recent price change that you have noticed while visiting your local supermarket. determine whether or
After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money.
q.1. what factors are important in determining the length of the imitation lag and the length of the demand lag?
Evalute the strengths and weakness of Callaway, Taylor Made, Titleist, Ping, and Nike. Which company has a competitive advantage in the marketplace.
Discuss the policies that Keynes as well as Hayek supported regarding how federal government ought to manage economy. What are differences between each school of thought.
What best describes the response to monetary policy in 2008-2009? Does this make sense in a classical world? What classical assumptions have to be thrown out to get this model to explain the response of the economy to the increase in the money supply..
If hard freeze eliminates Brazil's premium coffee crop, illustrate what will happen to the price of premium coffee.
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