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What lump sum of money (P) must be deposited into a bank account at the present time so that $500/month (A) can be withdrawn for five years (N), with the first withdrawal scheduled 6 years from today at a nominal interest rate (r) of 9% per year? [Hint: This is a deferred annuity where monthly withdrawals begin at the end of month 72).
Describe the Harrod-Domar growth model, and explain precisely how the model illustrates dynamic instability. Why is it often called the knife’s edge model?
Draw the game tree associated with this situation. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?
Suppose that a rent control law is causing excess demand in a market. If the law is removed, then we expect the market rent to [fall/rise] and the quantity of apartments rented to [fall/rise]
Many states have usury laws, which place a ceiling on interest rates. Why do most economists dislike these laws - The paper's content is jumbled and is partially in second person and uses unusual wording together as if it was a machine translation..
Briefly explain the meaning of f test why do you think this test is considered to be more important in multiple regression analysis than it is in simple regression analysis.
The government is allowing for emergency procedures to aid suffering chocolate addicts.
determine the environmental variable most likely to affect the short-run production over the next 12 months. Determine what managers can do to prepare for the possible change in short-run production. Pick a real or fictitious business.
George, who owns and runs Tots Poses, expects to encounter an average of eight customers per day, each with a reservation price shown in following table. What are total revenues, average revenues and marginal revenues
Illustrate what fraction of the total variation in trades of Bright Side remains unexplained.
goods and services that are not sold in markets such as food produced and consumed at home and some household articles
Describe what would happen if an outside agency determined the prices eBay could charge.
Use an isocost-isoquant diagram to explain how a rm determines the least cost combination of labor and capital to produce a given level of output. What is true of the marginal product per dollar at the least cost combination of capital and labor? Why..
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