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Assume that a country is growing at 5% per year. Now the saving rate decreases leadingto a new lower growth rate of 3.3% per year. How will the change in standard of living over time be impacted by this change in the saving rate and therefore the growth rate
Monetarists believe there's a direct link between the money supply and prices, real GDP, and employment. If the money supply is allowed to grow at a predictable rate, the economy will stay in balance. In effect, they feel that in the long-run, the ec..
A market consists of two population segments, A and B. An individual in segment A has demand for your product q = 50 – p. An individual in segment B has demand for your product q = 120 – 2p. Segment A has 1000 people in it. Segment B has 1200 people ..
Explain briefly why deflation leads to mortgage defaults.
What constraints does the consumer who follows Biblical principles have on his consumption that a non-Bible believing consumer would not have?
A construction company in Kurdistan expects to spend $4,000 two years later, $8,000 three years from now, and $6,250 six years from now. What is the present worth of the planned expenditures if the interest rate remains 11.8% per year? Use standard n..
(note: for this problem assume that all cash flows are stated in actual dollars and interest is market rate) Nike is considering three mutually exclusive alternatives for an inventory tracking and control system at one of its major assembly plants.
In production theory, what distinguishes the short run from the long run? Can these periods be defined in terms of specific lengths of time? Why?
At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald’s, etc.). What motivated the producers of all the individual products in the store to make them and offer them for sale?
How will globalization impact our economy in both short run and the long run? State your arguments "for" and "against" globalization and finally summarize your view on globalization.
Suppose that you sold a basketball ticket for the SEC tournament for $750. Assuming that you deposit the entire $750 in your bank and that the RR = 10%, What is the total change in checking account deposits?
A manufacturing company purchased electrical services for the next 5 years to be paid for with $70,000 now. The service after 5 years will be $15,000 per year beginning with the sixth year. After 2 years service the company, having surplus profits, r..
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