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1. Describe an example of a coordination failure problem.
2. What causes business cycles in the coordination failure model?
3. Why is money neutral in the coordination failure model?
show what happens to the nominal interest rate and the equilibrium quantity of loans when both borrowers and lenders increase their estimates of the expected inflation rate from 5 percent to 10 percent.
Would this have been the result of a change in demand or a change in the quantity demanded? Would you recommend the flat fee or the fee per bag? Why?
If twinkies cost $0.10 each and soda costs $0.25 per cup, how should paul spend the $1 his mother gives him to maximize his utility B) If the school tries to discourage Twinkie consumption by increasing the price to $0.40, by how much will Paul's ..
what are the burdens of the public debt?many people advocate taxing the rich to alleviate the debt problem but the
Recognize how daily life within various religions and current affairs are influenced by religion.
For each 25% increase in the unit price, 200 more calculators are supplied. When the price per calculator is P400, 500 more calculators are supplied.
Edwina, a commoditiesbroker, has acquired an option to buy 1,000 oz of gold at $50/oz.If she takes her option and Congress relaxes the import quotas, shecan sell the gold for $80/oz. If she takes the option and Congressdoes not relax the import qu..
Plant B was constructed 2 months ago; it has a pollution abatement cost of 10c2. Assume that neither plant is initially engaging in pollution abatement. The per unit benefit to a unit of pollution abatement is constant at $1500. Unless told otherw..
Linda loves buying shoes and going out to dance. Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is U(S,T)=5ST. It costs Linda $50 to buy a new pair of shoes, and $25 to spend an evening dancing.
A company is now licensed to manufacture a patented tool on which the patent has only 7 more years to run. The company makes 7500 copies of the tool each year and pays the inventor $100 per year plus $0.05 per tool produced.
Class, what are other types of incentive mechanisms for dealing with negative externalities. Explain.
A vendor converts the weights on the packages she sends out from pounds to kilograms (1kg = 2.2 lb).
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