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1. Assume an economy has the following production function: Y=F(K,L)=Ko.25Lo.7s If the savings rate is 0.2 and the depreciation rate is 0.05, calculate the steady-state capital stock per worker fitltl21 K* 2. You read in a newspaper that the nominal interest rate is 12 percent per year inCanada and 8 percent in US. Suppose that the real interest rates are equalized in the two countries. a) Using Fisher equation, what can you infer about the expected inflation in Canada and in the US. b) What can you infer about the expected change in the exchange rate between the Canadian dollar and the US dollar? c) A friend proposes a get-rich-quick scheme: borrow from a US bank, deposit in the Canadian bank. What's wrong is this scheme?
show a t-account for a bank when you make a deposit of 1000 into your checking account. assume the reserve ratio is
1. a monopolist is aa-price taker.b-price setter.c-cost maximizer.d-quantity taker.2. in perfectly competitive markets
Compute the natural rate of unemployment. Does it depend on the way people form their expectations of inflation? 2. Discuss the way people form expectations of inflation is modeled. 3. Compute the rate of inflation for years t, t+1, t+2 and t+3. 4. N..
Amazon's "autobot" recommended a book to an economist titled Quality maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defects
As the plant manager, should you recommend to the owners that the plant be shut down for a while? Justify your answer using at least two techniques and presenting the information graphically
Use the table below showing the quantity demanded
in 1931 pepsi was almost broke. the great depression hit it hard and coke had most of the duopoly market for soft
Evaluate recent national economic policies as they relate to the magnitude of the trade deficit and analyze the arguments for protectionist policies and the effect, if any, upon the trade deficit
Set up the consumer's utility maximization problem for prices pi, p2 and income m and how can this person be better off than by consuming the bundle
a monopolist has two types of customers. there are 100 of type a who will each pay up tp 10 for a single unit of the
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
How would you characterize your demand for health insurance -- elastic or inelastic? Does the price elasticity of health insurance vary with age, ethnicity, gender, etc.? Does it vary depending on the type of medical procedure needed? If a doctor fac..
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