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Suppose you make 30 annual investments in a fund that pays 5 percent compounded annually. If your first deposit is $7500 and each successive deposit is 5 percent greater than the preceeding deposit, how much will be in the fund immediately after the 13th deposit?
Suppose the real money supply increase to $2,780. Given your answers to part a, find the new combinations to graph the new LM curve, given that the real money supply now equals $2,780. Label this curve LM1.
Assume that the consumption of schedule for a private open economy is such that consumption C = 50 + 0.8Y. Assume further that planned investment Ig and net exports Xn are independent of the level of real GDP and constant at Ig = 30 and Xn = 10. Reca..
Is this a good thing for consumers? On the other hand, the government sees the increase in cell phone use as an opportunity to make some additional revenue, and it decides to tax service providers.
Some businesses will examine their pricing structure and modify it in order to maximize revenue, either by raising or lowering the price. For some organizations, lowering prices might be an effective means for increasing revenue.
What is the short-run profit-maximizing policy of a monopolistically competitive firm and how is the long-run equilibrium of monopolistic competition like that of perfect competition? also give example.
What does the sharing economy mean to you? What are the benefits of living in a sharing economy? What is a potential downside? Have you had any personal experience with the sharing economy? What would you share, what wouldn't you share?
Suppose there is a temporary increase in Yw, world income, which increase the demand for domestic goods on the world market. On the graph of Output, Money and Foreign exchange markets show the short-run effect of Yw increase.
Discuss the implication to Economic Efficiency of an economy operating at point and what would it take for the economy to operate at point Z?
What difference does it make, if any, if technology is moving very fast in the market so that this game proves to be one-time-only simultaneous play?
In 1983, the Reagan administration introduced a new agricultural program called the Payment-in-Kind Program. To see how the program worked, let"s consider the wheat market:
In the absence of a quota, what is the equation for the total supply of wine? Show your work - what are the equilibrium price and quantity of wine? Show your work.
Because agricultural demand is inelastic, a technological advance which lowers production costs will reduce total revenue. Thus, farmers have no incentive to introduce such a technique.
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