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A central bank with a dual mandate will achieve lower unemployment in the long run than a central bank with a hierarchical mandate in which price stability takes precedence. Is this statement true, false, or uncertain?
A severe drought has make a shortage of tomatoes. Jim makes his own barbeque sauce. One of the main ingredients of his sauce is fresh tomatoes.
Suppose the two rival office supply companies Office Depot and Staples both adopt price matching policies. If consumers can find lower advertised prices on any items they sell, then Office Depot and Staples guarantee.
Consider a monopolistic firm producing a good with the following cost funciton C(y) = ay where a > 0. The firm faces the following demand function D(p) = Bp-n where B, n > 0. This kind of demand function is known as CES (Constant Elasticity of Substi..
After a two-year testing period, Pat prepared the patent application to patent the device, and then found that just a month earlier one of Pat's testing customers had patented the device. Pat demanded that the customer give up the patent to Pat, ..
Suppose a single parent can work up to 16 hours per day at a wage rate of $10 per hour. Various income maintenance programs have been developed to assure a minimum level of income for low-income families, such as AFDC (Aid to Families with Depende..
Campus Print Shop is assume of purchasing a new, modern copier that automatically collates pages. The machine would cost $22,000 cash.
The Lexus LS 430, the top of the line Lexus sedan, riad a base price in Canada of C$85,700 during the fall of 2005. Restated in US dollars using the exchange rate prevailing then, that price is $71,885.
You need $50,000 cash throughout year. Your time is worth $100 per hour and it takes you a half-hour to get cash from your ATM. Your bank is paying 5% per annum passbook savings.
Devise a hypothetical business situation in which buying a lookback call option on a commodity may be a sound strategy for you. How about a down-and-out call option
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
Explain how might the international monetary system be reorganised to rely less on the US dollar.
Elucidate what would you expect to happen to the nominal yields changes in inflation expectations and required real yields occurred.
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