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According to the description of business fixed investment in this chapter, how would you expect a firm's investment decisions to be affected by a sudden increase in the demand for its product? What factors would determine the speed of its reaction?
A company makes small loans to students, lend in the amount of $500. The borrower is required to pay $40 at the end of each week for 16 weeks. Find the interest rate per week
The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or impl..
Calculate the t-statistic for the hypothesis test c.) Find the critical value and rejection region for a 5% significance level d.) Given your answers to b.) and c.), what do you say to the athlete's statement that he is better than Carl Lewis? 2. ..
A new drill press was purchased for $148,000 by trading in a similar machine that had a book value of $46,220, Assuming that trade-in allowance is $9,000 and the book value of assetraded in is $9,000 and Book value of asset traded
Below are hypothetical data for the economy in a particular year. There is no statistical discrepancy.Export 179Capital consumption allowances 79 Government current purchases of G & S 134 Indirect taxes (less subsidies) 76Wages, salaries, supplementa..
Lenders perceive that you are risky, so you must pay 12 percent annual interest to borrow from one of them. You only receive 6 percent on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ i..
Sort the data set by GDP and perform a Goldfeld-Quandt test for heteroscedasticity, running regressions using the subsamples of 14 countries with the smallest and greatest GDP.
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 of paint drops from 35 gallons a month to 20 gallons a month. Perform the following: 1.Compute the price elasticity of demand ..
Is the importance of spillover effects larger or smaller under flexible exchange rates, as opposed to fixed ones? Is macroeconomic management easier under one regime than the other?
Thomas has found a savings fund that pays interest of 2.62 percent compounded semiannually. He will make monthly deposits of $395 and he can make a deposit only once a month on the agreed payment date. Find the number of deposits Thomas must make.
What has been the average length of recessions since 1854? Since 1945? What has been the average length of expansions since 1854? Since 1945?
What does the Taylor rule imply that policymakers should do to the fed funds rate under the following scenarios?
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