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Three months ago you purchased, at par, a $100,000 bond with a stated interest rate of 5%. Today, the Federal Reserve announced that it is reducing the discount rate by 0.5%. How would you expect this announcement to affect the value of your bond?
Highest average fixed cost at which the firm can produce any given level of outputd. lowest marginal cost at which the firm can produce any given level of output
On balance one would argue that our society is mixed on the question of allowing firms to operate with market power; we certainly don't permit unregulated monopolies from operating but we do have a lot of industries where firms are permitted to..
what according to the mainstream theory of the business cycle is the most common source of recession a decrease in
Does it make sense to hold sleep, work, and leisure fixed while changing study? Why or why not? Explain why this model violates the assumption of no perfect collinearity.
discuss the various ways governments can handle externalities such as noise from a local airport or a barking dog or
At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 and meat prices had actually fallen to $2.00.
Explain the importance of price elasticity of aggregate demand. That is, what are the different welfare implications with respect to consumer surplus when aggregate demand is elastic compared to when aggregate demand is inelastic?
What indicates that we have positive value of perfect information and what is the expected value of perfect information on reserves?
But in the off-season, when the kids are back at school, one can find rooms for as little as $60 a night. Assume the average fixed cost of a room per night, including local government rates, insurance, taxes and depreciation, is $75.
Using a method similar to the CPI, compute percentage change in the overall price level. Use 2011 as base year, and fix the basket at 1 karaoke machine and 3 CDs.
Many monopolies are constructed by governmental legislation. like post office, local water company, local gas company, cable TV provider, local electric company.
question on 4 different graphs illustrate what happens to equilibrium price and quantity in the market for orange juice
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