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“Low energy prices create deflation, which can drive the real interest rates up.” Use the equation connecting the real and the nominal interest rate to the rate of inflation to justify this statement.
The owners of a small manufacturing concern have hired a manager to run the company with the expectation that (s)he will buy the company after five years. The goal of the owners in making this hire is to find the appropriate manager that will increas..
Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail ..
What does Friedman mean when he says the Earth is becomming "hot, flat, and crowded?" Describe three of the key problems that Friedman identifies in the book and explin why they re important.
Elucidate which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
Income elasticity of demand is expected to be _____.
q.given the following annual information about a hypothetical country answer questions a through d.billions of
An irrigation return flow drain has sampling equipment that can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $14,000 to install and will have a useful life of 10 years. Annua..
A change in the expected price level shifts
Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..
What is the steady state in the Solow growth model? How is it reached from some other initial situation in which the conditions required for the steady state are not satisfied?
Discuss a decision made by your chosen company that involved costs that should have been ignored. why did the company include these costs in their decision process.
Using 4 different figures, plot the time paths showing the effects of a permanent increase in the United States money supply on: (a) U.S. Money supply (b) The dollar interest rate (c) The U.S. price level (d) The dollar/euro exchange rate
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