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a) Critique the mortgage interest tax deduction on the grounds of fairness.
b) What are the problems with having one's house as the sole store of wealth?
Suppose u(c, c') = ln c+β ln c' , there exists N consumers and each consumer lives for 2 periods. In each period they receive an endowment y, y' and are taxed t, t'. Derive the lifetime budget constraint for both the consumer and government. Define e..
Consider what causes the lags in the effect of monetary and fiscal policy on aggregate demand. What are the implications of these lags for the debate.
A pizza place is considering investing $1000 for a new oven with a useful life of 4 years and a salvage value of $0. The oven is expected to generate $500 in re
a. Explain what happens to total revenue if Company A increases its prices. b. Explain what happens to total revenue if Company B increases its prices.
You are the manager of a firm that sells a “commodity” in a market that resembles perfect competition, and your cost function is C(Q) = 40Q + 5Q2 (so MC = 40+10Q). Calculate the expected market price. What output should you produce in order to maximi..
How do I test this hypothesis at the .07 significance level using the p-value method? I need to include the null and alternative hypothesis
Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $400,000 of equipment and furnishings. What is the amount of economic investment that ha..
a) Suppose that the price increases to $50 at maturity, what is the profit or loss of this strategy.
Suppose the market interest rate is 10 percent. Would you be willing to lend $10,000 if you were guaranteed to receive $1,000 at the end of each of the next 12 years plus a $5,000 payment 15 years from now? Why or why not?
In each case, indicate whether the statement as given is true/false/uncertain and explain why. Points will be given for the explanation of your answer only. Write your answers as completely as possible. If a polluting firm (for example, a steel produ..
What does full employment mean to you? Does full employment mean everyone who is looking for the job gets one?
What are the characteristics of a manufacturing process? How are manufacturing processes organized and evaluated?
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