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In a macroeconomic context, what are implicit liabilities? 1-Payments that the Federal government undertakes only during periods of recession. 2-Money owed to people possessing government issued bonds. 3-Money that the government has promised to pay in the future. 4-The amount of money that firms collectively owe to shareholders.
Why might the electricity industry offer to pay large consumers of electricity to stop using electricity during periods of high demand? Put another way, what is the purpose of interruptible load programs?
Explain what is meant by "first-mover" advantage and how each of these firms was able to control a relatively large share of their respective markets.
The president of the US announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what will happen to interest rates if the public believes him. If the public believes the president's prog..
q.the following outline provides a complete description of all economic activity in trivialand for 2003. compute gdp
List the economic benefits of, and problems with, subsidized college education. Examine subsidized college education by considering answers to the three basic economic questions: What to produce with limited resources? How to produce the goods and se..
Compute the impact on the money multiplier of an increase in the currency-to-deposit ratio from 10 percent to 12 percent when the reserve requirement is 8 percent of deposits, and banks’ desired excess reserves are 3 percent of deposits.
A local golf course just bought a lawn mowing machine. It comes with 2 yr free maintenance. The manager wants to provide enough money in an 8.00% bank account now (EOY -0) to have a fund out of which he will pay for needed maintenance. At the end of ..
This week, we discussed how racial segregation concentrates economic, social, and cultural capital in white communities. This disparity creates dissimilar opportunity structures that distinguish racial groups according to potential life course trajec..
In recent years, China’s central bank has been attempting to combat a significant real estate bubble by increasing banks’ required reserve ratio. What are Chinese policy makers seeking to achieve?
Calculate the following: Rate of Return and Calculate the following: Net Present Value Index
In December 1998, after a year in which Asian demand for B.C. lumber had fallen dramatically, an article in The Globe and Mail had the following headline: “Drastic Cost Reductions Needed to Save 13 B.C. Sawmills”. Does this headline suggest that B.C...
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a good destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. What is the expected value of your ..
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