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1.(Policy Credibility)What is policy credibility and how is it relevant to the problem of reducing high inflation? How is credibility related to the time-inconsistency problem?
2. (Case Study: Central Bank Independence and Price Stability) One source of independence for the Fed is the length of term for members of the Board of Governors. In the chapter before last, we learned that the Fed is a "money machine." Does this suggest another source of Fed independence from Congress?
The ending inventory units were 100% complete as to material and 50% complete as to labor. overhead is applied to production at the rate of 60% of direct labor cost. determine the unit production costs for material and conversion.
Maya farms a 40-acre farm. She can grow 30 bushels of corn per acre or 60 bushels of wheat per acre. Between these end points, production-possibilities frontier is a straight line.
the price the supplier will charge the stores dependson the size of the total weekly order for all of the stores. weeklyorder price perpackge how many packages should be purchase per week,and at which of the five prices listed..
What isthe effective mortgage yield for borrowing this mortgage.Now suppose that there is an annual interest rate cap of 2% specified in the loan contract. What isthe effective mortgage yield for borrowing this mortgage, assuming that no negative amo..
Mehnaz has already made arrangements for her birthday celebration: she is inviting her 7 friends to a dinner party at a famous Montreal restaurant. The estimated cost of this dinner includes $55 per person for the 3 course meal, as well as 4 bott..
A realtor is interested in comparing the asking prices of homes in Philadelphia and Baltimore. A random sample of 21 listings in Philadelphia resulted in a sample mean price of $185,900 with a sample standard deviation of $2,300.
During 2003, the economy began to stop worrying that inflation was a problem. Instead, the worry was about deflation, a decline in the price level. Assume that the fed decided to hold money supply constant. What impact will deflation have on inter..
Consider a situation similar to that in Figure 7-3, in which two countries that can produce a good are subject to forward-falling supply curves. In this case, however, suppose that the two countries have the same costs, so that their supply curves..
The Industry Minister is arguing that it is time to switch to difficult ISI to start reducing imports of heavy machinery. You instead want to argue for easy export substitution. How would you argue that your strategy is better than hers?
design two packages for the second-degree price discrimination case so that the first package has quantity 8 for the high demand and the second one has quantity 6 for the lower demand such that the low demand group has consumer surplus at least $5..
If the market is rational, would the painting that previously sold in the "hot" market necessarily fetch a higher price at the auction? What biases that were discussed in class may cause the painting that previously sold in the "hot" market indeed..
Due to economies of scale in the industry, entry by new firms is not profitable. Toyota has asked your company and your only rival to simultaneously submit a price quote for supplying 100,000 front and rear windshields for its new Highlander.
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