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Problem
Suppose you live in a low-income community, and that the government wants to help you by granting you the right to borrow $120 at a subsidized annual interest rate of 6 percent. Explain which of the following two strategies you would choose and why: (i) invest the $120 in your family business to obtain an annual net return of 15 percent while incurring a cost of $16, or (ii) deposit the money in a local commercial bank with an annual interest rate of 2.5 percent. What does this simple numerical exercise reveal about the design of government interventions to assist poor individuals' businesses?
answer a b c and d using the following informationsuppose that the supply schedule of maine lobsters is as followsprice
Graph Home's production possibility frontier. What is the opportunity cost of apples in terms of bananas? In the absence of trade, what would the price of apples in terms of bananas be? Why?
how will the entry of firms such as apple google amazon hulu and comcast into the business of streaming movies affect
One year during this period a poor harvest had a negative impact on supply of bread and the supply curve shifted resulting in an increase in market price. New York bakers found that the controlled price of bread in New York was below the new marke..
suppose you own a taxi company in new york city. assume further the taxi industry in nyc is described by a perfectly
suppose you are a painter and the price of a gallon of paint increases from 3.00 a gallon to 3.50 a gallon. your usage
Rule Based Monetary Policy: Below draw an AD/AS graph and a money market graph side-by-side. For the money market, use an upward sloping money supply curve and assume that the equilibrium interest rate in the money market is 5%.
Describe the conclusions of your analysis assuming the same tax is present in both the clothing and the food markets. Further assume that the tax revenue is returned in equal lump-sum transfers to all citizens.
In a two-period lived economy, one consumer wishes to buy a TV set in period 1. Calculate the prices the monopoly charges for TV sets in periods 1 and 2.
Prepare your memorandum paying particular attention to the following: For confidentiality reasons, please prepare an APA formatted cover sheet with your memorandum. Do not forget to indicate which unit the Assignment is for.
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..
grow fertilizers company purchases a gravity settling tank of the 30000 purchase price. the company finances 30 of the
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