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In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, WaWa, 7-Elevens, Gas ‘N Shops) although their prices are generally much higher than those in the large supermarkets. What explains the success of the convenience stores?
Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:
Carl paid $40,000 to the City of Hollywood for general revenue bonds. During the current year, he receives $2,300 interest income from the bonds. Market interest rates drop causing the value of the bonds to increase so Carl sells the bonds for $43,00..
In a certain year the aggregate value demanded at the existing price level consists of $100 billion of use, $40 billion of investment, $10 billion of net exports, and $20 billion of government buy.
Bank North advertises, “We pay 6.5%, compounded daily.” Bank South advertises, “We pay 6.5%, compounded continuously.” If you deposit $10,000 with Bank South for one year, how much additional interest will you receive?
In 1974, one could buy a theater ticket for $1.25. Today, the same theater ticket costs $6.50. Which pair of CPI's would imply that the cost in today's dollars was the same for both tickets? a. 60 in 1964 and 390 today. b. 75 in 1964 and 390 today. c..
Internalising the externality with an efficient corrective tax per unit of production
Suppose the price elasticity of demand for vanity plates in your state is 0.60. The initial price is $20 and the initial quantity is 1,000 plates per week. Suppose the state increases the prices by 10%. Predict the new quantity per week and total rev..
Assume that there are only two inputs (labor and natural resources) producing two goods (movies and gasoline) with no improvement in society's technology over time. Further, assume that natural resources are being rapidly depleted.
If the gross national debt initially is equal to $2.5 trillion and the federal government runs a deficit of $100 billion.
Examine if Medicare, and CMS, are leaders or followers in the delivery of high quality healthcare in this country. What initiatives has the government undertaken in quality and risk management Debate whether governmental involvement helps, or hind..
Suppose you introduced a new consumer food product and invested heavily in (1) national advertising (pull strategy) and (2) motivating your field sales force to sell the product to food stores (push strategy). What kinds of feedback would you re..
Explain how each of the following would cause the yield curve to shift if between now and next year:
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