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Five annual depostis in the amounts of $3,000, $2,500, $2,000, $1,500 and $1,000 in that order, are made into a fund that pays interest at a rate of 7% compounded annually. Determine the amount in the fund immediately after the fifth deposit.
What is the federal funds rate? Why is it a vital component of macroeconomics? How does the Federal Reserve influence the federal funds rate? Graphically illustrate the impact of an FOMC open market operation that aims to reduce the federal funds rat..
Consider following couples of variables and discuss whether you expect to find positive, negative, or no correlation between them. In each of the positive and negative examples, indicate whether or not you expect the correlation to be strong or weak.
According to the article about the gasoline shortage, which way is the demand curve shifting
Jim decides to “invest” in his backyard by burying $500. If he buries this money in 1944 and the average inflation rate is 3%, what is the purchasing power in 1979? How about 2014? If he had invested in the stock market which paid an average of 10%, ..
Did Rockefeller raise or lower the price of oil for consumers? Did he increase or decrease access to oil? What impact did this change have on the living experience of consumers? In particular, were wealthy consumers or poor consumers impacted more?
A 10% increase in the slice of pizza causes a 10% drop in quantity of both pizza and beer. Describe elasticities and the nature of the two products
Social Business Networking and E-Commerce. Select one of the social networking sites for business professionals listed in Insights and Additions box 3.2 in Chapter 3 of your text. Discuss why you believe it has been successful in creating community. ..
The government is concerned about high rates of unemployment. To spark hiring, it provides tax incentives for the businesses to invest in new capital projects and stimulate job growth. If the sole concern is adding jobs, use the Hicks-Marshall rules ..
Suppose there is a firm with two inputs of production, labor (L) and capital (K), with associated prices w and c, respectively. Also assume that the firm faces competitive input and product markets and that the two inputs are gross substitutes in pro..
Two similar surgeries, breast reconstruction and breast augmentation, have different prices. Breast augmentation is cosmetic surgery not covered by health insurance. Patients who want the surgery must pay for it themselves. Breast reconstruction foll..
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
Suppose that two people are playing a guessing game with a prize going to the person closest to one-half of the average. Guesses are required to be between 0 and 100 (could be integers or decimals). Show that none of the following are Nash equilibria..
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