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You bought a $100 used guitar and agreed to pay for it with a single $120 payment at the end of 6 months. Assuming semi annual (every 6 months) compounding,
A) Calculate the nominal interest rate
B) Calculate the effective interest rate
Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.
Comparing the situation of a nominal rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate of 6 percent and inflation rate of 2 percent, consumers would borrow more in which situation?
If your rival advertises and you do not, you will make $1 million and your rival will make $3 million. Does rival have a dominant strategy. What is Nash equilibrium for one-shot game.
Cigarettes are also heavily taxed. Illustrate what effect does this tax have on cigarette consumption
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Choose one and also show a picture of this in a AD..
The probability a HP network server is down is .048. If you have three independent servers, what is the probability that at least one of them is operational?
A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgra..
The Dominion Freight Company has invested $50,000 in a new sorting machine that is expected to produce a return of $7,500 per year for the next 10 years. At a 7% annual interest rate, is this investment worthwhile?
Illustrate the effects of monetary policies on the economy's production and employment.
Elucidate how many rounds of golf also games of curling will Seignior Cruz play in a week. Give an economic interpretation for the value of the Lagrangian Multiplier.
Compute average fixed cost, average variable cost, and average total cost for each quantity. What is the efficient scale of the painting company.
Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, and investment, AD, GDP, Prices and Unemployment. (Make sure to include both the money and the goods graph..
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