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Paul is currently unemployed and without health insurance coverage. Paul presently makes about $40,000 of interest income per year. He realizes that there is about a 5 percent probability that he may suffer a heart attack. The cost of treatment will be about $20,000 if a heart attack occurs.
Consider a market for surrogate mothers in the City of Shangeles. 100 people are willing to surrogate for free in a given time period, but others require payment. Supply is given by P_s = 0 for Q lessthanorequalto 100 and P_s = -100 + Q when Q > 100...
When bankers hold excess reserves:
You run a small business that uses both capital and labor to produce your output. The machinery (capital) has a marginal cost equal to $25 per hour and a marginal product cost equal to 50 units per hour. How many units of labor will the firm use?
Can cross-divisional integration and leverage be achieved without reducing decision making ability at the divisional level?
The US economy is currently operating below Potential GDP. Without using someone else's estimate of Potential GDP, how would you approach calculating how much current activity is below Potential GDP? Where would you get the data for your calculation?..
The Regulatory Origins of the Flash Crash. On May 6, 2010, the stock market suddenly swung a thousand points. Nobody really knows why. But Dennis Berman, in the Wall Street Journal, has a clue: Maybe the regulators did it. He notes that it results fr..
An investment, which is worth 22,000 dollars and has an expected return of 15.75 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow..
In 2002, one dollar bought 120 yen. In 2006, it bought about 100 yen. what was the value of the yen in 2002 and 2006? by what percentage had the yen risen between 2002 and 2006?
Studies indicate that the changes in fiscal and monetary policy affect the 3 economic agents in the economy (households, firms and government). How do the changes in monetary and fiscal policy instruments affect you personally or work wise?
Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth $2,500 plans to sell it after this drop in interest rate, he would realize (approximate..
If taxes were cut by 1 trillion adn the mpc was .8 how much would total spending. Increase in the first year with two spending cycles? Increase over an infinite time perios?
Do you believe government efforts to manage the economy usually make things better or worse?
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