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Discuss the relationship between interest rate and demand for inferior goods by providing the 12 months interest rates set by BSP and the demand for a sample inferior good.
Describe where the liquidity-demand/money supply equilibrium appears on the graph. Suppose in this period the interest rate is i0. Is this higher or lower than the equilibrium interest rate? Will next period’s interest rate be higher or lower than th..
In an Experian Automotive 2008 study, the average number of vehicles per household in the United States was found to be 2.28 vehicles.
Food prices has gone up globally in last few years. Explain how the income effect influences food purchases and provide some examples of the income effect that might occur when the price of food rises and other things remain the same.
A consumer receives income y in the current period, income y' in the future period and pays taxes of t and t' in the current and future periods, respectively. The consuer can borrow and lend at the real interest rate r. Use diagrams to determine the ..
Calculating MPC, In one year, a consumer's income increase by $400 and her consumption increases by $120. Her marginal propensity to consume is equal to.
The first deposit occurs on October 1, 2012, and the last deposit occurs on January 1, 2026. The account earns 13% compounded continuously.
Draw diagrams to explain how shifts in aggregate supply and demand are likely to lead to changes in output and inflation when:
a. What is the probability that the sample mean is less than 38 minutes? b. What is the probability that the sample mean is between 39 and 41 minutes?
Lindsey is willing to purchase 2 bags of tortilla chips when the price of salsa is $2.50. If the price of salsa rises to $3 and she purchases only 1 bag of chip
Polaris Industries wishes to purchase a multiple-use-in-plant "road test" simulator that can be used for ATV's, motorcycles, and snowmobiles. The simulator takes digital data from relatively short drives on a desired surface and simulates the ride ov..
A contractor is looking at purchasing a new piece of construction equipment. He can either buy it now or two years from now. The cost is $68,000 if purchased now. If purchased in two years, it will cost $81,000. Assume i = 10%/year and inflation f = ..
The learning process at many schools is being compromised. Instead of focusing on their education, students are concerned with their appearances. Fashion choices are of higher importance than completing homework assignments and passing tests. School ..
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