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Use a supply-and-demand diagram similar to Figure 2 to show the choices open to the Fed following an unexpected decline in the demand for money. If the Fed is following a monetarist policy, what will happen to the rate of interest?
A truck was purchased 3 years ago for $45,000 and can be sold today for $24,000. The operating costs are $9,000 per year, and it is expected to last 4 more years with a $5,000 salvage value. A new truck, which will perform that same service.
Unit Sales Price Personal Advertising Selling Expenses 132 $74 $1,140 203 74 1,400 217 55 1,160 255 53 1,210 252 64 1,490 239 70 1,460 152 75 1,200 197 58 1,020 230 65 1,390 154 61 1,040 As a first step in the analysis, the company ran simple regr..
the owner of a local Honda dealership. unlike other dealerships in the area, you take pride in your no haggle sales polict. Last year, your dealership earned record profits of $1.5 million. However, according to the local Chamber of Commerce, your..
Why must a firm prevent resale if it is to price discriminate successfully?
Draw a graph to illustrate the following: a. A Phillips Curve based on the assumption of a vertical longrun aggregate supply curve b.
What is meant by tied aid? Most nations have increasingly shifted from grants to loans and from untied to tied loans and grants. What are the major disadvantages of tied aid, especially when this aid comes in the form of interest-bearing loans?
If Arizona starts collecting a specific tax per orange from its firms, what happens to the long-run market supply curve? (Hint: You may assume that all firms initially have the same costs. Your answer may depend on whether unlimited entry occurs.)
Your cat's summer kitty-cottage needs a new roof. You are considering the following two proposals and feel a 15-year analysis period is in line with your cat' remaining lives. (There is no salvage value for old roofs.) Construct a choice table..
A distillation column is purchased for $300,000. The firm finance 40% of the investment with its own resources, and the rest with a loan to be repaid in 10 equal semiannual payments at an interest rate of 6% compounded semiannual. (Hint recall tha..
Describe how a car rental agency would calculate the price at which it rents cars, and relate your description to the equation for rental cost given in the text.
How can we generalize to the case where the probabilities of a left and a right pocket selection are p and 1- p, respectively?
(Monetary Policy and Aggregate Supply) Assume that the economy is initially in long-run equilibrium. Using an AD-AS diagram, illustrate and explain the short-run and long-run impacts of an increase in the money supply.
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