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Question: 1. Are forecasts based on rational expectations always correct?
2. Why might the theory of rational expectations be more relevant in explaining the behavior of financial markets than the effect of monetary policy on the level of output and employment?
Calculate the level of velocity for each year. At what rate is velocity growing? Why does Bank Capital Exist? Why did brokered deposits during the S&L crisis cause interest rates to rise?
Why does Piketty think that income inequality will continue to grow throughout the rest of the 21st century - why wouldn't equal access to education undo the rising income inequality?
There are only 2 firms in the iron ore industry. Assume each firm is free to set its production level but each firm can communicate what they plan to do first. What is the impact of the entry of another producer(RT)
Harry is lucky enough to get a rentcontrolled apartment for $300 per month. The market rent on such an apartment is $3,000 per month.
Explain what products or services local utility provides. Are there other companies that provide these products in your community?
Which of the projects represent simple investments? Which of the projects represent nonsimple investments? Compute the i* for each project.
How can you best handle the data so that you can perform group comparisons to examine the relationship between the two variables? Why is this technique the best for handling the data?
The coach wants to help Omar and has asked him to lead the prayer at the next game. Omar is nervous about whether he should say a Christian prayer or a Muslim prayer. He is also concerned about how to respond to the invitations to attend church.
Identify any point where the MRT changes.
A 1996 nill reforming the federal goverment's antipoverty programs limited many welfare recipients to only two years of benefits.A. How does this change affect the incentives for working
Click on cell B11 in the Model sheet. The heart of the formula is "B10+IF (C10=1,zeta,-zeta)." Explain how this formula is inducing autocorrelation.
A chemical factory dumps pollutants into a nearby river (permissible under the existing laws). In lieu of dumping into the river, the factory could pay for the pollution to be hauled to a toxic waste dump site at a cost of $125,000 per year.
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