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Alternatively, P = F/ert. P tells you the most you should loan. EXAMPLE: A borrower tells you that he will give you back $141.02 at the end of a loan for 6 years and 3 months with an interest rate of 5 1/2% per annum. The most you should have loaned him was P = $100.
In 6 1/2 years you plan to buy a house that you estimate will cost you $250,000. How much do you need to put into savings today, assuming you can earn 2 1/4% per annum on your money, to enable you to buy your dream home?
Which of the following $1,000 face value securities has the highest yield to maturity?
This production function does not satisfy the definition of rising returns to scale, constant returns to scale, or decreasing returns to scale. How can this be.
Which of the following people would be classified as unemployed?
Suppose that survey measures of consumer confidence indicate a wave of pessimism is sweeping the country. If policymakers do nothing, what will happen to aggregate demand? What should the Fed do if it wants to stabilize aggregate demand? If the Fed d..
When looking at the role of tax cuts, you will find out that this can be effective for our economy.
The last three Presidents of the United States were all elected to a second term in office. Let's examine the performance of the U.S. economy during the first term of each of the last three Presidents.
In May in Huntsville, the high temperature exceeded 80°F on 20 days. It rained on 8 days when the high temperature was over 80°F. If we choose any day in May, the probability that it rained on that day is independent of the probability that the high ..
The study that estimates that in the United States the multiplier value is equal to 1.62, is carried out by----
Explain why monopolistically competitive firms frequently prefer nonprice to price competition.
Why is a market economy susceptible to coordination failures that can lead to unemployment and inflation? What do you think can be done to rectify these failures?
In theory socialism is an economic system:
Think of the ways workers are alienated from the product and process of their jobs. How can these concepts be applied to students and their educations?
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