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If the MAAR is 12 percent, compute the value of X that makes the two alternatives equally desirable.
A
Cost: 150
Uniform Annual Benefit: 40
Salvage Value: 100
Life: 6 years
B
Cost: X
Uniform Annual Benefit: 65
Salvage Value: 200
Suppose the equation for th LM curve is Y=13500+100r. Use this equation to explain the level of income at which there is a zero lower bound on the federal funds rate, the interest rate that the Fed controls. C) Graph the LM curve for interest rate..
One supply-side measure introduced by the ReaganAdministration was a cut in income tax rates. Use an aggregatedemand/aggregate supply diagram to show what effect was intended.What might happen if such a tax cut also shifted the aggregatedemand cur..
Describe the need for federal government interventions in these crisis.
Use the red line (cross symbol) to draw the valuation, V, across the market. Use the orange line (square symbol) to draw the full price line for those who purchase from firm 1, i.e., the line showing the price paid by a consumer plus transport cos..
Provide reasons to explain what the government would have to do to keep the unemployment rate
Suppose the currency-deposit ratio rises to c=0.4. Determine the levels of M1, C, D, and R if the Fed does not respond. What open market operation would be needed to prevent a change in M1 Be specific about direction and amount of the open market ..
Suppose Corporation X deposits $80,000.00 in cash in commercial bank Y. If no excess reserves exist at the time this deposit is made and the reserve ratio is 30%,
As the number receiving the bonus vary from year to year due to the state of the economy.
What is the relationship between potential output and the natural rate of unemployment If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent.
Gruel is an inferior good. Hence, an increase in consumer income decreases the supply of gruel increases the supply of gruel decreases the demand for gruel increases the demand for gruel
Discuss and explain why hyperinflation has such a devastating impact on economies. Describe what it takes to stop hyperinflation.
Why do people hold bonds rather than larger savings account or checking account balances Under what circumstances might they change their portfolios, moving their funds out of bonds and into bank accounts
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