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Suppose real GDP is growing 3 percent, the money supply is growing at 10 percent, the velocity of money is constant, and the real interest rate is 5 percent.
(a) What is the current inflation rate and nominal interest rate?
(b) If money supply growth rate increases to 15 percent, how will your answers in part (a) change?
What issues might Mr. Smith face in deciding to go with this concept as he builds his business?
Explain briefly why TOTAL profit (profit from entire sales) is still likely to be lower with this pricing scheme than with perfect price discrimination, despite charging a fixed fee equal to the entire Consumer Surplus of a typical consumer?
Show graphically and explain what happens in the Cars market, include effects on Price and Quantity. What would happen to the equilibrium price and quantity of cars if the price of steel increased?
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A monopolist who does NOT practice price discrimination should never produce in the: Elastic portion of its demand curve because it can increase total revenue and reduce costs by lowering price. Inelastic portion of its demand curve because it can in..
What are some fiscal policy recommendations being recommended by current leadership.
Depreciable residential rental real property has been purchased for $70,000 and put into service during the third month of the taxpayer's tax year. For the applicable 27.5 year depreciation life, determine the allowable straight line depreciation ded..
Prices (fuel, water, grocery items, etc.) tend to rise in response to a natural disaster.
Illustrate what would neoclassical economists and new dissidents have to say about former Bush Administration's efforts to push forth a Free Trade of Americas with our South American, Central American and North American neighbours.
Whether the U.S. Congress press a tariff raising the cost of Japanese compute. Illustrate what are four mutually exclusive states of the world that you should be concerned about
A luxury good is defined as one for which:
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