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You are considering two types of automobiles. Model A costs $18,000 and has a salvage value of $9,000 after 4 years. Model B costs $15,624 and has a salvage value of $6,500 after 4 years. What is the rate of return on the incremental investment? What..
Why does the government grant patents to companies that research new drugs?
Susan quit her job as a teacher, which paid her $36,000 per year in order to start her own catering business. She spent $12,000 of her savings, which had been earning 10% interest per year, on equipment for her business. She also borrowed $12,000 fro..
In order to earn some extra money to pay for college, you have decided to open your own tattoo parlor one block from campus. You come up with a business plan and realize that you will need financing to get your business off the ground. You fill out a..
What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth? b. How do the implications of an increase in saving with regard to both the level and the growth rate of output differ between the neoclassical ..
Find the probability that the percentage of successes is less than 0.36. The probability is?
Suppose there is a simultaneous increase in government spending and an increase in the money supply. Explain what effect this particular policy mix.
Plan B allows a 7% credit with a 5-year MACRS schedule. For both plans, the credit is subtracted from the basis for depreciation.
New source bias may exist for mobile sources. Briefly discuss why this bias leads to a solution that is not cost-effective. What policies would you implement to eliminate this bias?
Friedman thought that problems with public education lay in the fact that: Friedman believed that the solution to higher education was different than public education because higher education differs from public education in the fact that: Friedman’s..
If the interest rates are zero bound, compare the effect of an expansionary monetary and fiscal policy. Draw graphs to show these effects and also explain in words. (Hint: Don’t consider negative interest rates. If interest rate is zero, will monetar..
How do the three equations that define general equilibrium in the AS/AS model differ (or not) when describing an economy using (i) adaptive expectations or (ii) completely credible central bank?
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