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Question: During the 1980s, a number of Latin American countries had a debt crisis where they could no longer borrow money from international markets to finance their government spending. Assuming that the tax revenues collected by these countries remained constant, how would you explain the hyperinflation experienced by these countries during the late 1980s and early 1990s?
1. A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The fund will grant P120,000 each year for the first 5 years,
This week, we are discussing stereotypes regarding the elderly population. These stereotypes go both ways, and we see it constantly in today's society (look at
What is the pricing structure in a perfect competitive market. What is the pricing structure in a monopoly. If the company produces nothing which of the costs is equal to zero?
Consider the following situation of asymmetric information for two parties in a civil trial. Assume that a plaintiff has private information about the level of
For each of the following items, indicate to which major group of the CPI the item belongs:
A monopolist has an inverse demand curve given by p(y)=12-y and marginal cost is 2y. What will be its profit-maximizing level of output? Suppose the government decides to put a tax on this monopolist so that for each unit it sells it has to pay the g..
Calculate consumption, government purchases, national saving, and investment.
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Suppose the country of Utopia is an open economy and its only trading partner is the United States. In addition, we assume that the uncovered interest parity (UIP) condition holds between both countries. The government of Utopia is currently running ..
Assume an increase in England’s economic growth. Holding everything else constant, we can expect:
Trace through the effects a minimum wage might be expected to have, for two cases: the demand for output produced by workers is perfectly elastic. the demand for output is not perfectly elastic
Sally deposited $100 a month in her savings account for 24 months. For the next five years she made no deposits. What is the future worth in Sally’s savings account at the end of seven years, if the account earned 6% annual interest, compounded month..
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