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When price level increases it reduces the purchasing power of our income. What is the impact of inflation on savings and interest rates?
Why does the Federal Open Market Committee use operating and intermediate targets rather than focusing only on the ultimate goals? What is the most important consideration in determining the best monetary aggregate for the Fed’s intermediate targets?
The mayor of Denver wants to upgrade the public transportation system. In order to fund the improvements, the mayor proposes charging an extra $1 for each ride taken.
Illustrate what is the average value of a loyal customer (VLC) in a target market segment if the average purchase price is $50 per visit, the frequency of repurchase is 12 times per year.
Consider an initial stock of 5000 tons of high grade ore. The demand function for this ore is P = 2400 – 0.2Q (Q is measured in tons/year), and the cost of extraction is constant at c = $200/ton. The discount rate is r = 0.10. Using a discount rate o..
The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100 proof is 50 percent pure ethyl alcohol; whereas wine is usually about 24 proofs, and most beer is 6-10 proof.) How would alcohol consumption pat..
What price are individuals with $5,000 in the bank willing to pay for the insurance. Will those with $5,000 in the bank voluntarily purchase insurance.
_______Orientation is the human resources function that
Seven years ago a New Brunswick logging company purchased a used wood chipper for $141,600 for biomass and custom chipping. Operating and maintenance costs averaged $4,100 per year. A complete overhaul at the end of year 4 cost additional $12,000. An..
The going rent in the market for 1-bedroom apartments in your neighborhood is $400. If the government imposes a price ceiling of $200 in this market:
Three main facts indicate that Microsoft enjoys monopoly power. First, Microsoft's share of the market for Intel-compatible PC operating system is extremely large and stable. Second, Microsoft's dominant market share is protected by high barrier to e..
"Mercantalism recommends that a country should limit its exports, so that more of the otherwise-exportable products are instead available for local consumption." Do you agree or disagree with this characterization of mercantilism's message? Explain.
Elucidate how principles of economics affect decision-making, interaction and workings of economy as a whole.
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