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Discuss why PPP should hold in the long run. Also, why is it that PPP often does not hold up empirically even over long periods of time.
Consider the market for apartments. The market price of each apartment is $140,000, and each buyer demands no more than one apartment. Suppose that Darnell is the only consumer in the apartment market. His willingness to pay for an apartment is $245,..
What were the scores of the students who scored above the third quartile? Separate your answer with a comma and a space.
Sarah’s friends are trying to convince her to leave her summer job one month early, from which she earns $1200 per month, to vacation in Costa Rica. If she goes there, her out-of-pocket expenses would be $2400. What is Sarah’s marginal opportunity co..
What is the impact of the trade surplus or trade deficit upon the interest rates and currency exchange rates.
The selling price of a house is $1,375,000. You have enough money for a 15% down payment with the balance authorized at 4% annual compounded monthly for 30 years. How much will the monthly payments be? How much interest will be paid over the term of ..
You may wish to visit the U.S. Bureau of Economic Analysis for the latest report on the balance of trade.
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,625,000, has annual operating and maintenance costs of $950,000, and requires overhauls every 5 years at a cost of $1,650,000. Using a 8.0 %/year ..
Assume your MARR for investment is 4% annual (compounded monthly as well). Compute the PV of your LEASE and LOAN payments and subtract these two values.
When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank.
Mining is proposed for a wilderness area that provides two benefits: recreation due to backpacking opportunities and biodiversity there are endangered wildlife and plants.
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
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