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(a) In the 1990s, several stocks had very, very high price to earnings ratios. These stocks appeared overvalued to many observers. What might the people who bought them have been thinking?
(b) Explain why the ‘B' in DIBA may be more appropriate for Buzz than for Clutch, based on the following information. Clutch and Buzz are both thirty years old. Both are saving for retirement. Clutch is also saving in order to make a down payment on the purchase of a new home. Buzz plans on renting an apartment indefinitely.
suppose a person defects from cuba (a country that generally disregards the use of markets) to the united states and asks to see a market in action. when would you take her? did you give her a complete showing of this market?
Consider two economies, one with a relatively flat aggregate supply curve and one with a relatively steep aggregate supply curve. In which economy will the governement have more succes in raising GDP by increasing its spending? What factors do you..
The company is risk neutral and so maximizes expected profits net of wages.
Assume the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes in the market
Suppose a risk-averse consumer has an initial wealth of $5,000 and a utility function U(M) √M.. He faces an 80 percent chance of losing $4000, and a 20 percent chance of losing $0.
Illustrate what policies have been proposed or implemented to address the problem your describe.
What is the point estimate of the population proportion? b. What is the point estimate of the population variance? c. Write a 95% confidence interval for the population proportion (? = .05).d. Will the bond proposal be approved with a 95% confidence?..
Assume the US increases tariff on automobiles imported from Germany and other foreign nations. Determine the effect of this tariff-rate increase on
Karen earns $75,000 in the current period and will earn $75,000 in the future. Assuming that these are the only two periods, and that banks in her country borrow and lend at an interest rate r = 0, draw her inter-temporal budget constraint.
What would happen if the tax was paid once only instead and describe the effect of the introduction
What are the three different approaches used to schedule advertising, and under what conditions are they used. Describe/discuss the communication process of both traditional (mainstream) media and social media.
The public's preference is to hold their money as half cash, half demand deposit. Reserve requirement is 25%. Determine monetary multiplier.
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