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More than 80 percent of mortgages in the United States involve fixed interest rates rather than adjustable interest rates. How would the effect of monetary policy on aggregate demand change if there were more adjustable rate mortgages than fixed rate mortgages?
If your business exports its products OR if imports factors of production...whether recent trends in exchange rates are likely to be good or bad for costs and/or revenues.
Why might college students’ price elasticity for vacation rentals on HHI be 3.0 while active seniors’ price elasticity be 1.0?
What changes in sales would you anticipate if you were manager of a Dodge/Plymouth franchise. What is each firm's marginal revenue.
Describe the demand curve for this product using the following data.
Each customer purchases their smoothie at the store where the total cost, i.e. price of smoothie plus travel cost, is the lowest.
After paying the movie distributors and meeting all other noninterest expenses, the owner expects to net $2 per ticket sold. Construction costs are $1,000,000 per screen. What is marginal benefits and marginal costs.
Presently the theater advertises 125 times per week. Assuming this is the only theater in town, and its marginal cost, MC, is equal to zero, Determine the profit maximizing ticket price for the theater.
Explain why do we consider a business-cycle expansion different from long-run economic growth. Why do we care about the size of the long run growth rate of real GDP versus the size of the growth rate of the population.
Show, using an AS-AD graph, how government can use accommodating monetary or fiscal policy to return output and unemployment to their long-run values.
Explain why would a country (for example China) choose to keep their currency relatively pegged to the U.S. dollar.
In markets economics, firms rarely worry about the availability of inputs to produce their products, whereas in command economies input availability is a constant concern. Why the diference.
Assume that PY increases by 15%, what percentage effect on quantity demanded of product X could be expected.
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