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Suppose that you are a borrower with a project that has a rate of return of 6.8%. You submit a bid to borrow $1,000 at an interest rate of 5%, and a lender accepts your offer. After you fund your project and pay back your loan, what is your gain or loss?
Explain your answer what would happen to the value of gold if public discovered that it could simply be made at home from inexpensive materials.
If income elasticity of demand is 2.12, it means that quantity demanded will __________ by 2.12 percent for every __________ percent __________ in income.
q. gains from trade will result if a country specializes ina. the goods in which it have a comparative advantage.b. all
Explain why do national income accountants compare the marker value of the total outputs in various years rather than actual physical volumes of production.
Toyota bonds are currently rated AA, and Ford bonds are rated BB, Suppose the price of 1,000 one year Toyota bond is 970$. What is the rate of return on the one year Toyota bond
As asset is purchased in September and is being depreciated over 7 years using MACRS 200% Declining Balance depreciation switching over to Straight Line Depreciation, with the mid month convention. In what year should the depreciation method be switc..
Game Theory Suppose there are only two car companies, Ford & Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the following price and profit data to answer the followin..
briefly explain the probable effects of the screenwriters’ wage increase on: Equilibrium price, equilibrium quantities, and total revenues in the movie and popcorn markets.
Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..
A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 after 5 years. Process Y will have a first cost of $800,000, annual costs of $1..
The average starting salary for engineers for 2002 was $47,000. The average in 2015 was 65,000. If we assume salaries are tied to inflation, what has been the average yearly inflation rate for this period? And, what should we anticipate the salary wi..
The utility function of a consumer is given by U = log(b) + log(c) where b and c are the consumption levels of barley and corn. Assume that the price for both goods is $1 and that the consumer has an income of $100. Calculate the optimal quantities o..
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