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A total of $41,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring 1 month after receipt of the $41,000. The stated interest rate is 6% compounded monthly. What monthly payment should be made?
A car manufacturing company adopts a new technology that, ceteris paribus, increases the productivity of capital. At the same time, workers unionize and demand higher wages. Assume that for this firm capital and labor are substitutable. Which of the ..
1. in recent years consumption spending by households has accounted for about 70 of the total spending aggregate demand
Suppose that Drexenture, a new consulting company, has the following production function: q=2c+4e+.5c*e where q is the number of reports produced, c denotes the number of fresh college graduates, and e denotes the number of experienced consultants. W..
q1. disposable personal income equals personal incomea. minus government transfer payments plus personal tax
Suppose that a firm’s production function is given by Q = KL + K. At point A, the firm uses K= 3 units of capital and L = 5 units of labor. At point B, along the same isoquant, the firm would only use 1 unit of capital.
Minnesota and Tennessee, among other states have recently began to tax the sale of health care providers such as hospitals and physicians. Analyze the incidence of this sales tax for three different scenarios. The demand for medical services is compl..
Which is the proper cite for the Code of Federal Regulations?
Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return..
Explain the use of a Letter of Credit. Why do firms use counter trade? How does capital budgeting for international projects differ from that of domestic projects?
The West Oak Park community decided to build a playground with a fair market value of $350,000. The assessment rate is 40% and the property tax rate is 7.5%. Find the property tax due for 2013.
How would the following developments affect aggregate demand and/or aggregate supply? Explain briefly. An increase in business subsidies. More funding for research and development in new technologies.
An economy is initially at the natural level of output. There is an increase in government spending. Use the ISLM model to illustrate both the short-run and long-run impact of this policy change. Be sure to label: i. the axes; ii. the curves; iii. th..
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