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John Borrows $10,000 at 18 percent compounded annually. He pays off the Loan over a 5-year period with annual payments. Each successive payment is $700 greater than the previous payment. How much was the first payment?
A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. What is the private market pric..
If the own price elasticity of demand for computers is E = -3/2, a 10% decrease in the price of computers will
Do you think governments should step in and help an economy move to potential or are "markets" capable of fixing themselves? Carefully consider the impact of falling prices.
When the stock of money increases too rapidly, then the economy will likely experience. The money supply in the united states is backed by. Money that is backed by something tangible like gold
What single sum of money at the end of the third year is equivalent to a payment series of $10,000 the first year, $9,000 the second year... down to 6,000 the 5th year? Assume the money has a time value of 10%/year compounded annually.
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain
Suppose that in January 2014, Joe Biden had borrowed $50,000 from his bank and paid an interest rate of 3%. He paid it back on December 31, 2014. What was the nominal interest C rate that Mr. Biden paid to his bank? (1) What was the real interest rat..
Your manufacturing company is currently producing just enough of its best-selling Awesome Gadget X to me this year’s demand. The fore cast for the next year is in, and its demand is expected to double (1 million new units per yr.) and stay at this le..
Discuss a real world example that could, or has already, caused a shift in either the AD (aggregate demand) or SRAS (short run aggregate supply) curves for the US economy, or some other country.
If the economy is facing rising levels of inflation, what would the Fed do with its three monetary control tools? Why does the Fed buy government securities during a recession?
A country that must adopt foreign exchange controls because of a misaligned exchange rate sacrifices the use of both monetary and fiscal policy instruments to influence domestic income and the interest rate.” Explain.
The chancellor said employers would be forced to pay staff a minimum of £7.20 an hour from next April 2016, and raise wages by 6% a year on average to around £9 an hour by the end of the year 2020. How this changes in the minimum wage, could possibly..
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