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In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3% per year, the money stock grows by 8% per year, and the nominal interest rate is 9%. What is:
a) the growth rate of nominal GDP?
b) the inflation rate?
c) the real interest rate?
Between 2011 and 2012, the quantity of cars produced and sold decreased by 20%. During the same period, the price of cars increased by 5% and the cost of gasoline increased by 20%. We know that the cross elasticity of demand of gasoline is -0.3. Comp..
"Firms prefer to acquire existing assets rather than undertake green field investments while contemplating FDI." Explain the reasons that support this argument.
The demand for milk is more elastic than the demand for water. Suppose the government levies an equivalent tax on milk and water. W hy he deadweight loss would be larger in the market for which item.
year on television advertising campaigns, promoting their beer brands. Obviously, if one firm is advertising its brands heavily, the others must also advertise to defend their market shares.
Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
q.covington corporation purchased a vibratory finishing machine for 20000 in year 0. the useful life of the machine is
Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible?
An industry consists of three firms. All three have identical variable costs VC(q) = 5q + q2, but whereas Firms 2 and 3 have fixed costs of $2,000, Firm 1’s fixed costs are $3,000. Market demand is Q = 335 – p and the firms play Cournot. What is the ..
Marian, a top graduate from Loyola in Humanities, was hired by a major corporation into a management position. Marian finished the corporation's management training program top in her group, and is performing above the norm in her position.
A tractor for over-the-road hauling is purchased for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Calculate the depreciation deduction and the unrecovered investment during each year of ..
Illustrate what are some examples of goods which the U.S. has comparative advantage in producing.
Elucidate what do the opponents of globalization criticize. With regard to consumerism, immigration, and nutrition, where do you find their critiques compelling.
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