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A car dealer is offering to a buyer one of two incentives: zero percent financing or $3,000 cash back. If the car price (before the incentives) is $25,000, find the following to compare the two options in terms of monthly payments.
a. Financing through the dealer – Find the monthly payment to the car dealer for a $25,000 loan at zero percent interest for 5 years.
b. Financing through a bank – Find the monthly payment to a bank for a 5 year loan at 6% when the buyer finances the $22,000 cost through a bank (i.e. the buyer takes the $3,000 cash back incentive).
consider an economy in which the amount of investment is equal to the amount of savings i.e. the economy is closed to
A price index measures:
St Atanagio is a remote island in the Atlantic. The inhabitants grow corn and breed poultry. The accompanying table shows the maximum annual output combinations of corn and poultry that can be produced. Obviously, given their limited resources and..
q1. illustrate trade-off must be considered when deciding explain how much of your wealth is to be held as money
The primary difference between the aggregate demand curve and an individual demand curve is that:
Explain how you would calculate the price elasticity of demand of gasoline? In general terms, explain how consumer and producer surplus will change as a result of this price increase?
Explain how does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete.
A positive demand shock in the very short run would cause _____________ in prices; in the long run, it will cause _____________ in prices.
Illustrate what do your results tell you about the relative desirability of perfect competition versus monopoly in the presence of externalities.
1. Data for the market for graham crackers is shown below. Calculate the elasticity of demand between the following prices.
If the scatter plot between a dependent time series variable and an independent time series variable is curvilinear (curves upward over the data series) what should the forecaster investigate to improve the performance of a linear regression model fo..
The commercial banking industry in Canada is less competitive than the commercial banking industry in the united states
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