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1. What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?
2. What if firms expected future returns to be very high?
The intent of this week exercise is to familiarize with EXCEL and to gain experience and practice in interpreting the output generated by most statistical packages (EXCEL) when linear regressions are run on a set of data.
Elucidate why the Fed must normally add reserves to the banking system via open market operations on most days in order to maintain its interest rate target in the Fed Funds market.
Suppose a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, calculate the short run?
What is the level of price, output, and amount of profit for an unregulated monopolist? Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by government? ..
What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.
Elucidate your answer also describe terms relevant to elasticity used in your explanation.
You do not like this as it will be possible for the large money center banks in Washington, Las Vegas to open branches in your banks geographic market area.
Suppose you earn $1 million over your working life and the real interest rate for retirement saving is 50%. How much will you save and how much will you consume in each part of your life?
Illustrate what are possible causes of a movement up or down along the demand curve. What are possible causes of a movement up or down along the supply curve.
Illustrate what are the best goals for the Fed. Should it lean toward restraint or toward expansion.
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
According to Colander, the perfect definition of economics. The three central coordination problems any economic system must solve.
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