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Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.
1. Is the real interest rate on this loan higher or lower than expected?
2. Does the lender gain or lose from this unexpectedly high inflation?
3. Does the borrower gain or lose from this unexpectedly high inflation?
Inflation during the 1970s was much higher than most people had expected when the decade began.
4. How did this affect homeowners who obtained fixed-rate mortgages during the 1960s?
5. How did it affect the banks that lent the money?
Marginal rate of substitution increases as he or she consumes more of a good.C. the law of diminishing marginal utility holds.
Neilsen Media Research wishes to pretest a questionnaire to be mailed to many thousand spectators. One question involves the ranking of male and female college students
Does this case illustrate the law of diminishing marginal productivity and in this case, less and less of a single factor, labor, is being used. Does this have anything to do with the law of diminishing marginal utility?
Environmentalists discuss that trade liberalization harmful for the environment. The decisions of World Trade Organization in particular have been subject of much criticism.
You've been asked to apply your decision-making skills and analysis to the merchandising of JMI's travel product stores. Much of the floor display space is taken up by innovations department. Describe the type of accounting quantitative data you wi..
Formerly, market for air travel in Europe was highly regulated. Entry of new airlines was severely restricted, and air fares were set by regulation.
Identify any variables that can be rejected as unrelated to sales and explain how trailer sales vary with changes in advertising and trailer rig income.
Analyse the determination of the appropriate amount of undeveloped land along this river as an externality and public goods problem
Determine the rate of can rent capital and marginal productivity of labor at its new targeed level of output. To minimize the cost, the car company should hire capital and labor until the marginal rate of subsitution reaches what portion?
What are "normal" goods? Give an example in our current economy and what are "inferior" goods? Give an example in our current economy.
Assume that, in a perfectly competitive market at profit maximizing quantity, the market price is greater than average total cost. Describe what will happen to the number of companies,
What level of output will these firms produce in the short run and are these firms operating under perfect or imperfect competition?
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