## Real interest rate, Microeconomics

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Real Interest Rate: Interest rate on a loan, adjusted for rate of inflation. Real interest rate represents real burden of an interest payment. Real interest rates should be positive for lender to obtain any real income from the loan.

#### Chamberline approach, a more simple explanation of the group equilibrium in...

a more simple explanation of the group equilibrium in the short and long run

#### What factors shift the aggregate demand curve to right, What factors shift ...

What factors shift the Aggregate demand curve to right and what factors shift the AD curve to left?  AD shifts to the right when any component of AD enhances autonomously; e.g

#### Arc elasticity of demand, Arc Elasticity of Demand - Arc elasticity cal...

Arc Elasticity of Demand - Arc elasticity calculates elasticity over the range of prices  - The formula of it is: *  Arc Elasticity of Demand: An Example

#### Price elasticity of demand , Describe what the price elasticity of demand i...

Describe what the price elasticity of demand is and why it is of interest in examining markets.  Might it be beneficial in the airline industry?  Why?

#### Slutsky equation, how to solve Min (x+y/2, 2y+x, 3x)

how to solve Min (x+y/2, 2y+x, 3x)

#### Help, A firm is currently operating where the MC of the last unit produced ...

A firm is currently operating where the MC of the last unit produced = \$84, and the MR of this unit = \$70. What would you advise this firm to do?

#### COST FUNCTION, A firm has two plants. One plant produces according to a cos...

A firm has two plants. One plant produces according to a cost function cl (91) = Yf. The other plant produces according to a cost function c2(y2) = Yg. The factor prices are fixed

#### Determine the wage contract , Assume that the employer (principle) wants it...

Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes the principle's expected profits from his business]. There a

#### Market segmentation, what are the uncontrolled variables you think may affe...

what are the uncontrolled variables you think may affect the segment of your camera

#### Payroll tax, Q. What do you meant by Payroll Tax? Payroll Tax:A tax whi...

Q. What do you meant by Payroll Tax? Payroll Tax:A tax which is levied on current employment or payrolls (collected either as a fixed amount per employee or as a percentage of