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Consider the two-period consumption model of borrowing and saving. Suppose Claire has an income of m1 today and m2 a year from now and can borrow and lend at the interest rate r. She chooses consumption levels c1 and c2 given her well-behaved preferences. a. Draw Claire's budget constraint and in deference curves. Draw her in deference curves such that she chooses to save money. b. Suppose the interest rate increases to r0. Show how the budget constraint moves following this change. c. Will Claire remain a saver after the price increase? Show why on your diagram.
the shortcomings of NAFTA for the last 20 years including what each country has lost as a result of NAFTA.
Fill in the column "Society's willingness to pay." Then draw a graph of society's demand for the public good.
Need help with the paper on federal reserve system and its monetary policy tools. Also discuss the influence of federal funds on major economic indicators like inflation
Elucidate an example of a microeconomic and macroeconomic phenomenon. Would you give an example of a microeconomic decision you have made at home or work.
Twenty randomly selected statistics students were given 15 multiple-choice questions and 15 open-ended questions, all on the same material. The professor was interested in determining on which type of questions the students scored higher.
q1. is it advantageous for all countries to utilize cheaper labor or does importing your goods back to the u.s. still
In this forum we discuss the different arguments that are made in favor of international trade protectionism and the important role of the politics of protectionism.
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
What would be its (cost-based) markup ratio? Now suppose the demand curve the firm faces is:Q = 3000 - 50 P. Is the firm going to achieve its profit goal? Explain.
Find the profit-maximizing price and quantity in each market and in which market is demand more elastic?
What is the probability that it will take a worker less than 4 minutes to complete the task? c. What is the probability that it will take a worker between 6 and 10 minutes to complete the task?
Calculate the present value (PV) of profits for Abe's business at each of the following discount rates: 8%, 9%, 10%, and 12%.
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