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1) Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD's is 6% while the yield on 2-year marketable CD's is 7% and this investor purchased the 1year T-bill, what must (s)he expect to happen to short term interest rates over the coming year?
Some years ago, conservation groups paid cattlemen in the Western United States to move their herds away from wild buffalo herds so that the buffalo would have more feed and would not have to compete with the cattle. What is the relevance of the C..
Explain why it is important to uncover causal relationships for policy analysis. Also explain the causal methods of regression, difference-in-difference and random assignment
Apply the theories, models, and practices of economic theory to create value for the firm. Analyze solutions with support from relevant data, resources, references, and economic principles.
According to Monetarists, what is the long-term result of continuing expansionary monetary policy in which the money supply grows faster than RGDP. Briefly explain using the EOE.
Early studies of the economic convergence hypothesis, which looked at data for a group. Is it valid to infer from this ?nding that the convergence hypothesis is true?
Money demand shocks will not affect the output level so long as the Fed pegs interest rates. True or false? Use an IS-LM diagram to explain your answer.
Write out equations for marginal cost (MC), average total cost (ATC), and average variable cost (AVC), and show these on a properly-labeled graph.
Implement to support a stronger economic recovery
Discuss the link between agenda setting and the development of legislation - Discuss the various sources of ideas for legislative proposal
Many colleges sell special cards that students can use to purchase everything from textbooks or meals in the cafeteria to use of washing machines in the dorm. Students deposit money in their cards; as they use their cards for purchases.
What happens to the marginal rate of substitution as you move along a convex indifference curve? A linear indifference curve?
imagine you are part of a strategic planning group at a large corporation that is considering developing a new proposed
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