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Assume that a country produces an output Q of 50 every year. The world interest rate is 10%. Consumption C is 50 every year, and I = G = 0. There is an unexpected drop in output in year 0, so output falls to 39 and is then expected to return to 50 in every future year. If the country desires to smooth consumption, how much should it borrow in period 0? What will the new level of consumption be from then on?
Just breaks even over the year as whole. a Wouldn't the restaurant do better by staying closed out of season. At what cost will it shut down, given that all its fixed costs are sunk.
Explain the relationship between the price charged and the marginal revenue a monopolist receives from selling an additional unit. Provide a discussion that explains the relationship between the monopolist’s marginal revenue and its price elasticit..
The problem of _________________ arises when an antique dealer knows more about the quality of an item than the potential buyer, and as a result the buyer with less knowledge must worry about ending up at a ________________.
According to U.S. Department of Agriculture econominist Karl Fox, "An increase of 10 percent in the farm price of the "average" food product would be associated something like a 4 percent increase in the retail price and perhaps a 2 percent decreases..
Suppose there is a $200 billion recessionary gap. If there are no taxes or imports to restore the economy back to potential GDP how much should government expenditure be changed if the marginal propensity to consume is 0.75? Does government expenditu..
What is the immediate effect of the increase in demand on the price and quantity of yellow corn? Yellow corn and white corn (the key ingredient in corn tortillas) are substitutes in production. As a result of the changes in the market for yellow corn..
Suppose that mux=10 and muy=20, further suppose that the consumers budget constraint can be expressed as 20x+10y=400. For this consumer, find the optimal amount of good x to buy.
Consider the model of team production in which total incomearrow-10x10.png is four times the total amount of effort supplied. there are two individuals on the team and each individuals on the team and each individual i has the utility function u dete..
How do the “rules of the game” help determine who will be poor and who will not? (Hint: How did the Civil Rights Act of 1964, which forbade discrimination on the basis of race, likely affect the incomes of African Americans compared to the incomes of..
What is the probability of attendance between 39,000 and 45,000? e) What must the attendance be at a game, for that game's attendance to be in the top 1% of all games?
Quantity of pizzas demanded soared following week from 1 pie an hour to 100 pies an hour. What was price elasticity of demand for Domino's pizza.
Suppose a firm has an expected ROE of 10%. The firm reinvests 75% of its earnings. What is its growth rate? Assume this firm pays a current dividend of $4.25. You expected to sell the stock at the end of 3 years for $85.
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