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A consumer receives income y in the current period, income y' in the future period and pays taxes of t and t' in the current and future periods, respectively. The consuer can borrow and lend at the real interest rate r. This consumer faces a constraint on how much he or she can borrow, much like the credit limit typically places on a credit card account. That is, the consumer cannot borrow more than x, where x< we - y + t, with we denoting lifetime wealth. Use diagrams to determine the effects on the consumer's current consumption, future consumption, and savings of a change in x, and explain your results.
Explain what the terms of trade are in international trade. What is the exchange rate in international trade? What is the difference between a tariff and an import quota? Do you believe the United States should impose international trade restrictions..
q1. you have the following information for your productbull the price elasticity of demand is -0.9.bull the income
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
q1. illustrate which country has the most fundamentally sound monetary policy?q2. insurance agents receive a commission
An individual consumes only two commodities X and Y. She prefers a bundle B1 with 6 units of X and 2 units of Y to a bundle B2 with 4 units of X and 7 units of Y. Also, she prefers a bundle B3 with 2 units of X and 8 units of Y to B1. Are these prefe..
The financial plan is:
Different market structures are prevailing in ourdifferent sectors like agriculture, power supply, transport industry, cement industry,restaurants, etc. Analyze and compare the characteristics of all marketstructure with respect to the given secto..
A monopoly producing a chip at a marginal cost of $6 per unit faces a demand elasticity of ?2.5. Which price should it charge to optimize its profits?
Elucidate what set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium.
Economic consequences and positive accounting theory try to explain why managers care about accounting policy choices and to predict how managers will respond to changes in accounting standards. Explain the relation between economic consequences and ..
How is the equilibrium price determined? What happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price?
Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. Total..
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