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Nancy buys a house in 2000. He obtains a fixed 10% mortgage interest rate, and makes payments of $1,000 per month. The 2000 CPI is 90, the 2001 CPI is 90, the 2002 CPI is 100, the 2003 CPI is 110, and the 2004 CPI is 120.
1. What is the real mortgage interest rate in 2001, 2002, 2003 and 2004?
2. What are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004?
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As what will happen if the marketplace is characterized by sticky wages.
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Sprint acted as a well-managed business that takes the actions necessary to remain competitive in a very competitive marketplace.
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Two identical firms face linear demand. Market demand is given by P=30-Q. Compare graphically consumer and producer surplus in Cournot and Stakelberg equilibria to perfect competition.
Making dresses is a labour-intensive process. Indeed, the production function of a dress-making firm is well described by the equation Q = L - L 2 /800, where Q denotes the number of dresses per week and L is the number of labour-hours per week.
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