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1. Because future generations are likely to enjoy higher real incomes than the current generation, shouldn't we aim to run up the stock of debt so that those most able to pay face the higher taxes?
2. Does it make sense for there to be any limits on the ability of a democratically elected government to run ?scal de?cits? Does the fact that future generations cannot vote have any bearing on this issue?
You are the owner of a fast-food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast-food restaurant,..
Presume the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Describe.
For uncovered parity interest the one year interest rate goes form 5%o 9%. The foreign interest rate is 5% and et0 =.80 what is et1 that brings exchange rate back to long run equilibrium in t2
the meat-processing industry in hungary is perfectly competitive and there are two types of firms operating domestic
Cost minimization for a given level of production is equivalent or identical the concept of product maximization for a given cost level , true or false ? please explain
if current output is such that marginal cost exceeds marginal benefit should more or less resources be allocated to
Wages offered for a particular type of job are the same across the country. The labor market usually yields a range of wages rather than a unique equilibrium. Wages exhibit frequent and prompt changes in response to changes in market conditions.
Proponents of government spending claim that it provides public goods that markets generally do not, such as military defense, enforcement of contracts, and police services. Standard economic theory holds that individuals have little incentive to ..
Aerotron Electronics is considering purchasing a water filtration system to assist in circuit board manufacturing. The system costs $40,000. It has an expected life of 7 years at which time its salvage value will be $7,500. Operating and maintenan..
A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discount (junk bonds). The bonds are rated as equally risky and both maure in 15 years.
An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of three years,..
BMW Goes to War Against Chinese Carmaker
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