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In an economy that only produces corn, people live in 2 periods and seek to maximize the logarithmic utility function U=ln(C1)+ln(C2). There are 10 people. Each has after tax real income of 35,000 bushels of corn in period 1 and 156,000 bushels in period 2. Investment demand is 100,000 bushels of corn no matter what the real interest rate is. Find period 1 savings per person as a function of the real interest rate in the economy.
Consider a market where supply and demand are given by QXS = -16 + PX and QXd = 83 - 2PX. Suppose the government imposes a price floor of $40, and agrees to purchase any and all units consumers do not buy at the floor price of $40 per unit. Determine..
What does this suggests about the team's belief concerning the income elasticity of demand for tickets?
How would you characterize Judy Wicks approach to business, from a theoretical perspective? Give examples from Judy's book to illustrate your points.
simply change the quantity demanded
Assume to fruit-picking can be done by children or adults, but to adults are twice as efficient as children
For Canada, the expenditure effect generated by the U.S. tax cut and the spillover effects of increased defence spending will push the Canadian economy further into an economic recovery.” a) How will the U.S. tax cut and the increased U.S. defence sp..
44 g of dry ice (solid CO2) is put into a 2.0 L container andthe top is sealed. The dry ice turns to gas at roomtemperature (20*C). Find the pressure increase in the 2.0 Lcontainer. (one mole of CO2 has a mass of 44 g, R= 0.0821 L-atm/mol-K)
Suppose the money supply is currently $400 billion and the Fed wishes to increase it by $200 billion. Given a required reserve ratio of 10%, how much the Fed should increase money supply? If the Fed decided to change the money supply by changing the ..
Analyze the forms of aid to developing nations and determine which have the greatest and least amount of impact on a country during a natural disaster.
Question: What are two trade theories that have direct implications for location choice of multinational firms?
Suppose a perfectly competitive industry whose demand and supply are characterized by the following demand and supply functions: Qd = 180 − 2P and Qs = 10P. How many units will the representative firm produce? Taking this quantity as the average per ..
What would happen to the IS curve if the following happened (answer assuming only one thing happens at a time). Carefully explain your reasoning.
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