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Paul invested $10,000 at time "0" in a mutual fund that guaranteed a return of 5% per year. After 5 years, he invested $20,000 in another guaranteed fund at 4.5% return. Twenty years after his first investment, how much money in total will he have in both the funds?
What is the mechanism by which an increase in government spending or a tax cut stimulates the economy? Government borrowing can “crowd out” private investment by…
The relationship between a worker’s daily wage, w, and her daily output, q, is q = 0.1w22 – 0.0005w3 so that the worker’s marginal product with respect to her wage is MPw = 0.2w – 0.0015w2. What is the optimal efficiency daily wage for the firm to pa..
If goods A and B are substitutes in consumption, a decrease in the price of good B will _________. If goods A and B are substitutes in production, a decrease in the price of good B will _________. If goods A and Z are complements in consumption, an i..
If the reserve requirement for a bank is 10% and the Federal Reserve buys $100M more in bonds, will the money supply increase or decrease
Discuss the effect that an increase in interest rates will have on financial stability of the company, the common stock of the company, and the bond issues in the marketplace.
Health officials have suggested that the spread of AIDS can be partly contained if more males use condoms.
If the US backed out of NAFTA, what could be a feasible alternative trade deal?
Suppose a monopoly faces an inverse demand curve of P = 6 − Q and has constant marginal cost of 2. If the government is considering legislation that would regulate price to the competitive level, what is the maximum amount the monopoly would spend on..
In view of the interest in transcontinental mergers and acquisitions deals, discuss how you would deal with the issue of distance
Discuss the major challenges you would face in running such a business and how you would expect to overcome them. Provide specific examples to support your response.
The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life.
When quantity supplied increases at every possible price, we know that the supply curve has
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