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If consumption spending this year (C1) and next year (C2) were perfect complements, would the permanent income hypothesis still hold, in the sense that the consumer would not increase spending by the full amount of a transitory income shock, but would instead smooth consumption across periods? Explain using a diagram.
Optimism or pessimism about business conditions and economic growth can also lead to shifts in the IS curve. Describe a case from the real world where economic growth picked up because of more optimism and another case from another country where econ..
Evaluate the role played by Howard Schultz in the growth and success of Starbucks. Is the company in danger of relying too heavily on Mr. Schultz?
Identify specific products which have above average usage for African American, Asian Americans and Hispanic Americans? Brands that have higher than average purchase for each group for African Americans, Asian Americans and Hispanic Americans?
Discuss a time when you have had to deal with a sensitive and/or a negative message like working in retail. What would you do differently in light of the material covered in this module? If you would do nothing differently, describe how your handling..
Who profit by this law. Under Illustrate what circumstances would restaurant voluntarily provide free transportation. Use a supply and demand graph to justify your answer.
There is a 1 percent chance that you will have healthcare bills of $100,000, a 19 percent chance that you will have healthcare bills of $10,000, a 60 percent chance that you will have healthcare bills of $500, and a 20 percent chance that you will ha..
A one year zero-coupon municipal bond interest rate equals the afer tax rate of a 1 year zero-coupon US Treasury Security (USTS.) The interest rate on a USTS is i = 0.1. The capital gains tax rate on the USTS is r = 0.1. What is the municipal bond in..
q1. a clinic uses doctors also nurses to serve the maximum number of patients given a limited annual payroll. the
Because products are typically differentiated in some way, there tends to be significant advertising in monopolistically competitive industries. How does advertising affect a typical firm in a monopolistically competitive industry?
Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day. If Pacifica produces only surf..
A bidders' value for a good may be low ($2), medium ($5), or high ($7). There are an equal number of potential bidders having each value. Suppose two bidders show up for an auction at which the good is offered. The possible outcomes of the auction ar..
Create a scenario around this business in which a manager would decide to either stop operations in the short-run or going out of business in the long-run.
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