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Consider a consumer who lives for two periods. His utility is a function of consumption levels in periods 1 and 2 and is given by ??(??1, ??2 ) = ??1??2. His income in periods 1 and 2 are given by ??1 = ??2 = ??, that is income is the same in both periods. Due to expansionary monetary policy the market interest rate is equal to 0. Will this consumer decide to borrow or lend in period 1? Demonstrate your answer.
What would be the effect of sequestration in the neoclassical model? Show graphically and explain. Assume the economy starts at full employment.
If one automobile brand has an elasticity of 1.5 and another has an elasticity of -.03, what would account for the difference?
A person you trust asks you to loan them $2,000 at the end of year 1, $1,000 at the end of year 2, nothing in year 3, and then they will pay you $1,000 in year 4, $2,000 in year 5, and $3,000 in year 6. They note that you will pay out a total of $3,0..
Obtain data on key macroeconomic indicators: real GDP growth, interest rates (Cash rate), unemployment rate, consumer price index (CPI), exchange rates
Sue and Meg have begun operating a house cleaning service for the purpose of earning enough money to travel to Europe. After six months, they had saved enough for their trip, so they stopped operating their business. What is the nature of their busin..
Assume that the Central Bank of Nation X is responsible for maintaining fixed exchange rates by buying and selling domestic and foreign currencies in exchange
The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires
During this course, you have compiled a marketing plan for your fictional start-up company. Share the most important part of the marketing plan
When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?
Find out the probablities, a newspaper says that the mean number of typographical errors per page is seven.
Brand X contains 20, 2 and 1 units of the minerals, while Brand Y contains 4, 1, 2 units of the minerals respectively. Brand X costs $18 per kg while Brand Y costs 6 per kg.
A new six-speed automatic transmission for automobiles offers an estimated 3% improvement in fuel economy compared to traditional four speed transmissions in front-wheel drive cars. If a four-speed transmission car averages 31 miles per gallon and ga..
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