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A used car parking lot has the following deal on a $23,000 car. Zero down and $385 monthly payements for 70 months. What is the monthly rate they charge? Draw a cash flow diagram
Assume that there are 10 million workers in Canada also that each of these workers can manufacture
Suppose you are visiting the local Big Y supermarket to purchase groceries. At the grocery, you see an advertisement for a store rewards card. You decide to sign up for the card, in spite of the fact that you had only planned to buy $47 worth of groc..
You have three options for a loan. Which one is the lowest monthly cost?
Suppose that one year has elapsed, you have received the first payment of 600$, and the market interest rate is still 5%. How much would another investor be willing to pay for your security?
Explain what "having a comparative advantage” at producing a particular good or service means. What does "having an absolute advantage” at producing a good or service mean?
Atlanta Falcons fans crave a better team, i.e. they want to win the Superbowl. Often they have grown weary of ownership that won’t give them one. If the team changes owners, when will fan expectations of improvement be? (hint: assume all owners max..
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
Imagine the economy starts off at the steady state, with m=v=1 and b=1/2; additionally, suppose that the Fed's infaltion target (π-bar) is 1% and that the real federal fund rates (r-bar) is 1%. In period 1, political uncertainty causes a negative AD ..
Suppose we expect an inflation rate of 2% for the next year. If a lender requires a 3% real return on a one year loan, what interest rate should he charge? Refer to above. Suppose we get an unexpected 1% of additional inflation over the year. Who is ..
q.mr. h. simpson is an individual who earns 5 per hour working at the springfield nuclear power plant. assuming he
At what value of p would you be indifferent between these two alternatives? Given your response to part a, would you be classified as risk averse, risk neutral, or risk seeking? Suppose that alternative 2 changed so that you would receive $1,000 with..
Assume that a “leader country” has real GDP per capita of $50,000, whereas a “follower country” has real GDP per capita of $25,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 14 percen..
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