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How much can Wells Fargo lend to developer who will repay the loan by selling first 6 view lots out of 13 lots at $190,000 each 2 year from now? Assume the bank will lend at a nominal 14% per year, compounded semiannually.
What's wrong with this way of thinking? "When the government runs a budget deficit, it simply pays its bills by printing more money
Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
Compare and contrast between internal and external growth strategy. Identify a range of factors which might estimate whether an internal or external strategy is pursue such a growth strategy.
Suppose the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound of money supply.
Each of the policies described above may lead to an increase in the long-run level of investment spending in the economy. Using a diagram of the aggregate production function, show that any such increase will lead to an increase in the future leve..
Keynes is famous for saying: "In the long run we are all dead". How long is the long run? How long are you willing to wait for inflation to ease or for unemployment to improve?
Explain whether there is a relationship between inflation and unemployment and should government interfere and reduce inflation and unemployment?
A certain machine expenses $25,000 to purchase and install. It has salvage values and operating costs as demonstrate in the table in the attached file. The salvage value of $20,000 listed at time 0 reflects the loss of installation costs at the time..
The questions asked if a paper mill manufactures $1 million worth of paper this year but adds considerably to the pollutants in a nearby river, are the social expenses arising from this pollution reflected in the gross domestic product?
Determine which type of regulation is used for each of the a. Preventing a merger that the government believes would lessen competition b. The activities of the Food and Drug Administration c. Regulation of fares charged by a municipal bus company
The Fed sells $100,000 in Treasury Bonds to Chase Bank in the secondary market. a) What happens to the monetary base as a result b) If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result
Explain how can this be sustained if people switch over to high priced goods which causes employees and companies in the lower priced goods market to go out of business.
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