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Ford earns $45,000 per year. His salary automatically increases by the inflation rate (as measured by the CPI) every year. He currently owes $12,000 in credit card debt at a fixed rate of interest. If the inflation rate unexpectedly rises from 1.5% to 7% next year, will Ford be better or worse off?
Identify at least four (4) key points of a relevant economic article from a newspaper. The article must deal with any course concepts covered in Weeks 1-8. (Concepts covered- GDP, Demand, Supply, Market equilibrium, monopoly and price discrimination ..
The article, "Why Are Trade Barriers So Low?," contests the recent political economy literature, which suggests tariff rates should be high, by pointing out that tariffs are relatively low in developed countries.
At the beginning of the year, Arianne had a net worth of $5,000. During the year she set aside $100 per month from her paycheck for savings and borrowed $500 from her cousin that she must pay back in January of next year. What was her net worth at..
Using your good problem-solving skills, think about how to advise your employees. But you have to agree that things have gotten out of hand.
Suppose the adult population over the age of 16 is 237.8 million and the labor force is 153.9 million (of whom 139.1 million are employed). How many people are "not in the labor force?" What are the proportions of employed, unemployed and not in t..
Consider an economy with a constant nominal money supply, a constant level of real output Y = 100, and a constant real interest rate, r = 0.10.
The price paid for a bond being the sum of the present values of future revenues; do you think that an investment in bonds is profitable in todays economy? "
Assume rental market for apartments in Anytown is in equilibrium as shown. How large will the shortage of apartment be? You must show you work to get credit.
One government strategy to provide for economic stability and encourage economic growth is to provide tax reductions or tax incentives for individuals and businesses. An alternative approach is to increase government spending to accomplish these g..
Assume that the Federal Reserve sells government securities from its existing holdings to financial sector and non bank public. Trace by the expected consequences of this secondary market action on banking system
Evaluate the MU in the utility functions
Mejza Compressors uses a lean production assembly line to make its compressors. In one assembly area, the demand is 100 parts per eight-hour day.
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