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Consider a bond that promises to pay $100 in one year.a. What is the interest rate on the bond if its price today is $75? $85? $95?b. What is the relation between the price of the bond and the interest rate?c. If the interest rate is 8%, what is the price of the bond today?d. How does the demand for bonds vary with the price of bonds?
Explain how much is spent on bus rides. What is consumer surplus in dollars at this equilibrium. How much is the total benefit in dollars from bus rides.
Later Henry ford invented the assembly line for manufacturing automobiles, other automobile firms copied his invention.
What would be the net marginal revenue of the marketing division of the firm for the pocket calculators? At what price should the calculators be sold on the external market?
Reflecting back on what you learned about sustainable management practices throughout this quarter; determine 5 activities that illustrate sustainable management of resources that you pursue in your everyday life.
Assume the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur. Illustrate.
Elucidate how would the presence of these agricultural policies affect the results of such tests.
The fear of unwanted price wars may explain why many firms are reluctant and suppose that a new machine tool having a useful life of only one year costs $80,000. Exam: 050474RR - MACROECONOMIC MODELS AND FISCAL POLICY
Using knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?
Illustrate what is nominal GDP. Illustrate what is real GDP included in each.
Illustrate what are the arguments in favor of trade restrictions, and what are the counterarguments. According to most economists, do any of these arguments really justify trade restrictions.
Explain how do changes in interest rates, inflation, productivity and income affect exchange rates.
Macro-economics is perhaps most divisive area of economics. Macro economists divide themselves into different schools of thought. Two of the biggest camps are the Keynesians and the Monetarists.
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