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Suppose you want to invest some money in the bank. Currently, the bank is paying a rate of 5.5% compounded annually. Assume inflation is expected to be 4.5% per year. After taking inflation into account, what is the real interest rate the bank paying?
For the purpose of these exercises, let the firm's profits be given by P(x) = 20x - x^2, and let damages be given by D(x) = 2x^2. Under these situations find: Level of output x, Producer surplus and net damages. A regulator imposes a unit Pigovian ta..
A forward premium for a given currency (say the nominal bilateral exchange rate value of the dollar where S = 80 yen/1 dollar = 80) occurs when the value of the currency as given by the forward spot rate appreciates such as S = 85 yen/1 dollar = 85. ..
Consider an economy in which people wish to hold money balances worth a total of 5 million goods. They are indifferent between money issued by the central bank and money issued by private banks. Suppose the central bank pays no interest on its money ..
Describe how each of these activities affects government, households, and businesses. Describe the flow of resources from one entity to another for each activity.
Which of the following changes would shift the demand curve for a good or service?
Illustrate what does this outcome reveal about the size of the multiplier
A risk neutral principal hires a risk neutral agent to work on a project. The project can either yield high output h or low output l. The probability of h depends on the agent’s unobservable effort e. With probability 1 − e the output is low.
A major defence supplier expects to generate additional revenue from its recently won government contract. The company expects the revenue will be $110 million in the first year and the revenue increasing by $2.5 million each year for the next 4 year..
A purely competitive firm finds that the market price for its products is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units.
Assuming 20 people sign up for the cruise, determine how many passengers will result in the max revenue. What is the max revenue? What is the fare per passenger?
State your opinion whether your are Federalist or Anit-federalist whether you agree or disagree with a persuasive opposing stance of your opinion for a newspaper or a political speech to the union address?
Explain how each of the subsequent events affects the equilibrium price also quantity of pizza- the price of mozzarella cheese rises.
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