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You have invested $15,000 at a nominal rate of 8%.
a) What will be the nominal value of your investment after 15 years?
b) If inflation averages 4% over the next 15 years, what will be the real value of your investment after 15 years?
c) What will be the average annual real rate of return on your investment?
If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.
A firm has the production function y = x1 + min{x1, x2}. Draw three isoquants for this firm. Does this firm have constant returns to scale?
If you have a perfectly competitive industry of 100 firms with a monthly demand curve of Q=1000-P and TC=Qi^2+100Q+100, a subsidy of $36/month, a long-run equilibrium (before subsidy) of P=140, Q=860 (each firm produces 5 units) and a long run equili..
Discuss possible hold-up problems, importance of long term contracts, and possibility of underinvestment in labor that might occur under such compensation schemes.
Brinley puts on an art show in a public space asking for donations base on how much people enjoy his work.
Why has the application of the World Bank's standard Structural Adjustment Policies been counter-productive in many developing countries?
You had chosen to take a trip during spring break if you had not gone you would either work a temporary job or studied for exams the opportunity cost of your trip.
Explain the concept of supply and demand in your own words and provide two examples of how you see it at work: one from the news and one from personal experience. State the difference between demand and quantity demanded, as well as the difference be..
Use terms for direction and timing to characterize the movement of the nominal interest rate over the macroeconomic cycle. Detail you explanation by reference to the Keynesian transmission mechanism.
Rather than the short run effects of decreasing government spending, allow a self correcting economy to bring the model back to equilibrium, the government decides to act to eliminate the output gap through monetary policy. Explain how the government..
If a rise in incomes is the same proportion for both low-income and high-income workers.
A total of $400,000 will be deposited one year from now for the gas pipeline maintenance in the area. They estimate that the deposit amount will increase by $80,000 per year for 6 years thereafter, determine the equivalent: (a) Present worth and (b) ..
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