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Suppose the demand for bananas increases. Explain how the price of bananas adjusts after the increase in demand.If the demand for bananas rises, a shortage is made at the original equilibrium price. The meaning of this is that there will be upward pressure on price. Since as price rises, quantity demanded falls and quantity supplied raises until the two are equal.
1. In this query the implied volatilities are calculated by using a risk free interest rate of 2%. The computation are summarized by the following figure. 2. The computatio
BAGS, Inc. is considering an investment in a new project. The required investment is $1,000,000. After-tax net cash flows are expected to be $50,000 the first year and are expected
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you just started your first job, and you want to buy a house within 3 years. you are currently saving for the down payment. you plan to save $5,000 the first year. You also anticip
Discuss the criteria for a ‘good’ international monetary system. Answer: A good international monetary system must offer (i) sufficient liquidity to the world economy, (ii)
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