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Question: Suppose financial innovations reduce the interest rate differential at a given level of output. How, if at all, does this development affect output, Y, and the saving real interest rate rs ? How does it affect the borrowing real interest rate rb ? Draw a diagram to help illustrate your answer.
Suppose the price increases from $1 to $1.50. Calculate the price elasticity of demand using the mid-point method.
Analyse the changes in the competitive environment of air travel using Porter's five forces analysis.Examine the possible responses of legacy carriers (e.g. British Airways, Air Malaysia) to new low-cost entrants.
In a short research paper, compare and contrast a chosen LCC with a full-service airline using Doganis' 5 key product features as a framework (price, schedule, comfort, convenience, and image).
The U.S. Navy's robotics lab at Point Loma Naval Base in San Diego is developing robots that will follow a soldier's command or operate autonomously. If one robot would prevent injury to soldiers or loss of equipment valued at $1.5 million, how mu..
Illustrate and explain using a diagram, what affect this behavior is most likely to have on the allocation of factors of production
The market represented in exhibit above is allowed to operate freely, find the total employment in the market and total employment by the firm
think of a business firm you recently visited such as walmart home depot red lobster barnes amp noble mcdonalds etc..
Sam currently earns $30,000 per year. the governments is considering a policy that would increase sam's income by 12%, but raise all prices by 8%. what is sam's compensating variation for the proposed policy? can you compute it without knowing his..
How might freeing up dead capital have helped to increase Mongolia’s rate of economic growth? What kind of investment would foreign residents undertake if they were to purchase a small fraction of the shares of stocks owned by Mongolia’s residents?
In the absence of an agreement between the landowner and his neighbors, is he likely to harvest too much or too little of his timber at any given time? Characterize this as an example of a positive or a negative externality.
In which of the following economic activities do we commonly find a proprietor acting as a supervisor, a residual claimant and a provider of capital?
Write the economic analysis section of a business proposal. This will include statements about the market structure and the elasticity of demand for the good or service, based on text book principles.
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