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Let the real interest rate, ir, equal 5 percent and the rate of depreciation, d, equal 10 percent. In this case, if the price of a piece of capital is PK = $10,000, what is the rental price of capital, RK?
Suppose the price level in year 2009 is 100 and $100 buys 100 notebooks that year. If the price level rises to 125 in year 2010, what is the new value or purchasing power of the do
difference between mercantilism and absolute advantage
Q. Relation between Money - wealth and income? Money isn't the same as wealth. An individual may be very wealthy however have no money (for instance by owning stocks and real e
An investment promised a payoff of $195 two and a half years from today. At a discount rate of 75% per year what is the present value of this investment? A. 169.47 B. Not enoug
Why do financial crises occur and why are they so damaging to the economy?
exam notes of national income accounting
COMPARE AND CONTRAST CLASSICAL MODEL AND KEYNESIAN THEOTY
2. Given the following information: Consumers are very optimistic about the future. The price of oil has just doubled. The money supply is growing at a 6% rate. The government has
Suppose the own price elasticity of demand for good X is -5, its income elasticity is 2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and go
Neo-classical thinking on growth: Neo-classical thinking on growth is owed to the Robert Solow whose exogenous growth models in the of the mid-20th century remained
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