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On June 5, 2003, the European Central Bank acted to decrease the short-term interest rate in Europe by half a percentage point, to 2 percent. The bank's president at the time, Willem Duisenberg, suggested that, in the future, the bank could reduce rates further. The rate cut was made because European countries were growing very slowly or were in recession. What effect did the bank hope the action would have on the economy? Be specific. What was the hoped-for result on C, I, and Y?
List three businesses that can exist today,
What are barriers to entry, and why are they crucial to the creation of potential long-run monopoly profits? Give an example of a barrier that can lead to monopoly.
Suppose the second equation is changed to I = 500. What is the new equilibrium level of income? How much does the $100 increase in investment change equilibrium GDP?
What are the degrees of freedom for the regression? What are the degrees of freedom for the error? What are the formula and value for the regression sum of squares? What are the formula and value for the residual sum of squares?
What is meant by "substitutes for," and "neutralizers of," leadership? Give some subordinate, task, and organizational examples of these substitutes and neutralizers.
To evaluate the two projects, you decide to use the company's weighted average cost of capital (WACC) for the less risky project (12 percent) and the WACC plus two points (14 percent) for the more risky project.
d) How much profit is the monopolist making e) Suppose the market is no longer depicted by a monopoly, but has become perfectly competitive. What would the profit maximizing price and quantity be if the market were perfectly competitive
There is a monocentric town that is shaped in a circle. The yearly rent for land in the CBD there is $36,000 per dunam. The value of the agricultural land on the outskirts of the town is $1,500 per dunam. The cost to travel in the town is $310 per..
Consider the following situation in the Country A's labor market: If the wage is w = $7:00, workers will provide l = 10 units of labor. If the w = $3:00, workers will provide l = 2. On the other hand, if w = $5:00, rms will want l = 6, and if w = $8:..
Suppose that businesses buy a total of $100 billion of the following resources labor, land, capital, and entrepreneurial ability from households, if the households receive $60 billion in wages, $10 billion in rent, and $20 billion in interest
Total Revenue Look back at Exhibit 3, panel (a) in this chapter. Explain why the total revenue curve is a straight line from the origin, whereas the slope of the total cost curve changes.
Jeff holds $50,000 wealth which has a utility of 7.07 utils (assuming utility is the square root of wealth in thousand dollars). He considers investing this in a gamble which has a 0.6 probability of increasing his total wealth to $100,000 and 0.4..
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