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Assume following (equations) summarize/represent structure of economy. If:C=Ca + 0.75(Y-T)Ca=800-25rT=400+0.2YIp=600-25rG=1200(M/P)^d = 0.2Y-20rM^s/P=700
1. Illustrate what are equations for IS and LM curves? Illustrate What is equilibrium level of income and interest rate? What if mix of fiscal and monetary policies is changed. Te money supply is increased by 100 while government spending reduced by 250:
2. Does investment increase, decrease or remain unchanged? Why/calculate.
3. Does consumption increase, decrease or remain unchanged? Why/calculate.
U.S. Airways experienced huge losses for several years in the 1990s, yet it continued to operate its fleets.
illustrate what would you estimate the difference between the inflation rates of the U.S. also Japan.
If the company issues debt to finance the project what would be the value of the company. What would be the value of the levered equiy.
Consider that, in this case, we 1st add (marginal) costs, not quantities, since these are the costs associated with each t-shirt.
Does the lender gain or lose from this unexpectedly high inflation. Explain does borrower gain or lose.
Illustrate what advice would you offer Kyle also Chad when they are ready to present their business plan to a banker.
Producing nations outside the organization, like Britain and Norway, should do their share and cut production.
If the price level remains constant by Explain how more will real output increase.
How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Two consumers Jorge and Admen, together own 1,000 baseball cards and 5,000 Pokémon cards.
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force.
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