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An engineer wishes expand his workshop but can only afford monthly payments of $1900. 20-year loans are available at 4.95% interest compounded monthly. If the engineer can make a $24,000 down payment, what is the most he can spend in the expansion?
In the wake of hurricane Katrina, Americans were stunned by the loss of life and the damage sustained. Criticisms were directed at the city government of New Orleans, the state government of Louisiana, and the Federal Emergency Management Agency, a p..
Suppose that taxes and transfers are fixed, so that a change in the government’s spending is equivalent to a change in its deficit. The multiplier is three. For each increase in the deficit of 100, interest rates rise by one percentage point. When th..
If we open up the market to free trade so that the world price dominates, what will be the quantity imported? Suppose the government placed a tariff of $10 per unit imported on this good. How much revenue would they raise?
Assume that domestic US savings equals domestic US investment, why would you think that in this case the “glut of savings” from China could be destabilizing in the US?
With full-employment and efficient utilization of all its resources Dismaland can produce 300 tanks. Alternatively, Dismaland could devote all its resources to automobiles and produce 650 per year - or it could produce any combination of tanks and au..
On the topic of Economic growth: i. What does it mean? ii. How can it be graphically represented? iii. What are the prerequisites to Economic growth? iv. Why is Economic growth important? v. What factors tend to limit growth? The Presentville – Futur..
Suppose that there are two firms competing in the market for taxi services. Big Ben Taxis has the marginal cost MCB = $9 per trip, and the fixed cost FCB = $3,000,000. Find the equilibrium price and quantities for the case in which the two taxi compa..
If the reserve requirement is changed to 5 percent, Explain how much can First Bank lend and by Explain how much can the money supply be expanded.
Discuss both the price elasticity of demand and the cross-price elasticity of demand conditions facing a firm in a monopolistically competitive industry. Include the role of advertising and the creation of brand loyalty.
In what specific way do growing populations and booming economics add to the challenge of reducing GHG emissions? To what extent might these characteristics explain the failure of some countries to meet their Kyoto targets?
The Marriott hotel chain typically charges 20% more for rooms Sunday-Thursday night than they do on weekend in “downtown” urban business markets. What type of pricing strategy does this describe and why is this strategy effective? EXPLAIN.
El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..
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