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A car company currently has capital stock of $100 million and desires a capital stock of $110 million.
a. If it experiences no depreciation, how much will it need to invest to get to its desired level of capital stock?
b. If its annual depreciation is 5%, how much will it need to invest to get to its desired level?
c. If its annual depreciation is 10%, how much will it need to invest to get to its desired level?
Which of these scenarios do you think is most likely to occur? Defend your choice by analyzing it in the context of the deep historical forces outlined in the textbook.
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What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%? If the Federal Reserve Bank wants to increase the interest rate ..
Suppose that prisons historically have required prisoners to perform, without pay, various cleaning and food preparation jobs within the prison. Now, suppose that prisoners are offered paid work in factory jobs
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently.
Rama has three brothers.All of them are in abroad(combine appropriately)
Explain how can this be sustained if people switch over to high priced goods which causes employees and companies in the lower priced goods market to go out of business.
Illustrtae what is the profit-maximizing level of price and quantity for this monopolist.
Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.
What factors account for the tremendous growth in the American economy between 1790 and 1860? Below are some items to consider.
Suppose the Bank of Canada wanted to keep the interest rateconstant. Show (using the money market diagram) what the Bank would have to do to offset the output fluctuations. What would this imply for the IS - LM model
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