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a. Why does a horizontal LM curve imply that fiscal policy has the same effects on the economy as those derived in Chapter 9 ?
b. What is happening in this case in terms of Figure 10-3 ?
c. Under what circumstances might the LM curve be horizontal?
Calculate the daily percentage returns for the S&P 500 and Intel stock - Compute the correlation coefficient between excess market return and excess return on Intel stock, and compare its square to the R2.
The reading for this module discusses panel data and the use of pooled cross-sectional analysis. Post a research question you would be interested in pursuing. Then discuss and predict the outcomes with the use of panel data and the use of pooled c..
The online bookseller wants to increase its total revenue by offering 10% discount on every book it sells.Its custmers are divided in 2 groups Group A and group B Volume of sales before the discount for Group A= sales for $1.55 million per week
A useful piece of depreciable property was bought for $20,000. If it has a useful life of 10 years and a salvage value of $5,000, how much will it be depreciated in the 9th year, using the 150% declining balance schedule
year 1=450,000 YEAR 2= 350,000 year 3= 275,000 year 4 =200,000 the general manager has been told by the owners of the team that any capital expenditures must yield at least 12 percent after taxes. the firm's marginal income tax rate is 40 percent.
if you borrow 3000 and pay back 3410 after 1.5 yearsa what is the interest rate charged if the payment period is 1.5
The manager of a national retailing outlet recently hired an economist to estimate the firm's production function. Based on the economist's report, the manager now knows that the firm's production function is given by Q=K^(1/2) L^(1/2)
Revenue from sales of a training video for the first year are estimated to be $350,000. In addition, revenue is expected to decrease by $25,000 per year over the life of the video (which is 10 years).
Whay is the payback period of the following investment when a) i=0% and b) i=10%/ year Initial Cost ($) 1,000,000 Annual Cost ($) 100,000 Annual income ($) 300,000 salvage Value ($) 500,000 Max Life time: 10 years
a firm recieves a shipment of 100 personal computers for use by its staff. of these 100 computers five are defective
Suppose two people, Michelle and James each live alone in an isolated region. Both have the same resources available, and the grow potatoes, and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of..
he world real interest rate r* is 0.75%. For the following questions, use the conditions associated with the general monetary model. Treat Mexico as the home country and define the exchange rate as Mexican pesos per Canadian dollar, Epeso/C$
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