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If the government made it easier for people to borrow money, perhaps by enacting programs to help them get loans, would you expect consumption spending to become more sensitive or less sensitive to current income? Why? How is the marginal propensity to consume affected? How is the multiplier affected?
Suppose demand for Terry's haircuts increase to P=40 - 0.40Q. At a price of $15, should Terry raise the price of her haircuts? Why or why not?
Market research at Apple Corporation has shown that the demand function for its new iPhone is as follows: QA = 3 - 0.02PA + 0.0002I + 0.01PS where QA is the quantity demanded (in thousands) of iPhones, PA is the price of an iPh..
a couple just had a baby. How much should they invest now at 5.2% compounded daily in order to have $30,000 for the child's education 17 years from now Compute the answer to the nearest dollar.
Let a firm's long-run production function be Q= 1/10LK +3L^2K-1/10L^3K Assume that in the short-run the firm's labour input is fixed at 10 units. a) What is the firm's short-run production function? b) What are the short-run average and marginal prod..
The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claims that 40 units is the firm's profit-maximizing level of output. Explain whether these claims are correct.
The banking system currently has $50 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 10 percent. If the Fed raises the reserve requirement to 12.5 percent.
you open a savings account to save for retirement. everymonth you put in $100 which pays 8% interest compoundedmonthly. at the end of each year you recieve a $500 bonuswhich you place directly into your account.
Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and the more cocoa you buy from him, the higher the price you have to pay per unit. In fact y units of cocoa will cost Casper y2 dollars.
assuming that no population growth or technological progress occurs, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and depreciation rate.
Suppose that firm wishes to make produce 100 basketballs every hour. Compute the cost minimizing combination of labor and capital the firm should use. Compute the cost of making 100 basketballs. What is the MRTSLK if K = 25 and L = 100
Because of a legal settlement over state health care claims, in 1999 the U.S. tobacco companies had to raise the average price of a pack of cigarettes from $1.95 to $2.45. The decline in cigarette sales was estimated at 8 percent.
The local economists estimate that Y is equal to $12,000 and Monopoly has set Pc at $10. If Monopoly's MC of serving another customer is equal to $1, what is the profit maximizing price for seasonal passes
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