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Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been open for only a year. They both want to expand. When the two owners to to the local bank looking for a loan, which one is likely to get a lower interest rate? Explain in terms of the risk-return principle.
The currency of Iceland is called the Krona. in July, 2007 the exchange rate was roughly 60 krona to a dollar. In July 2011, the exchange rate was roughly 120 krona to a dollar.
a) Over this period, would you expect exports from the US to Iceland to get cheaper or more expensive in Iceland?
b) Would you expect living standards in Iceland to rise or fall?
c) Is the krona appreciating or depreciating against the dollar?
When, if ever, is it acceptable for one state or groups of states to interfere in the domestic affairs of another state
What are the major trading regions? Why are they important? How do you see the world changing in the future based on these regions?
You need both equations and clearly labeled graphs (separate graphs for each question) to answer the following questions. Assume that b=1/2 and that initially the real interest rate is equal to the marginal product of capital at 3%. How much will thi..
According to Jared Diamond, what are the “roots of inequality” in the division of the world into ‘haves’ and ‘have-nots? What role has “the roots of inequality” played in the division of the world into ‘haves’ and ‘have-nots’ within today’s globaliza..
Summarize the major provisions of the law that you chose. Describe the economic impact of the law. Provide specific economic data from credible references. Has the law improved the environment or situation? Provide specific data from credible referen..
In the circular-flow diagram, the schematic representation of the organization of the economy.
If a payment received two years from now has a present value of $200 and the annual interest rate on the payment is 5 percent, then the future value of the payment.
How would that plan compare to one that requires each firm to provide a $100,000 group program that would cover all employees in the firm, no matter what the number of employees was?
A random walk process with drift:
If you deposit RM3,000 with each bank, illustrate what will be the difference in the two bank account balances after two years.
Goodspeed Automobiles manufactures 100 disc brake cylinders. At this output level, its marginal revenue is equal to its marginal cost. If the revenue per unit of output is $500 and the cost per unit is $350, its profit is:
Plywood is used in the construction of houses. If the price of plywood rises, what happens to the supply of houses
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