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In U.S. data, how sensitive isthe demand for money to changes in nominal interest rates?
Whatare the consequences of an increase in the money supply on output and the pricelevel? Does your answer depend on where the economy starts (whether it is inlong-run equilibrium or not)?
a, If the prie of output is p>c, how much should a typicalfirm produce can there be a competitive equilibrium in this case b, If the price of output is p
Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion (1 billion = 109). What rate of return would the Indians have received ..
McDonald's is a force to contend with both domestically and globally. The company has been a success story world-wide because of its focus on marketing details and because it plans globally yet acts locally.Choose a doughnut/cinnamon bun/bread..
The average cost is AVC = 3500 - 6Q + 0.005Q square If the industry is competitive, estimate the shut-down price. If the market price is below shut-down, regardless of fixed costs, explain why the firm should shut down.
In 2003, the market price for a 3,000 square foot home in South Tampa, Florida was $350,000 and 358 new homes were built. In 2004, the market price for a 3,000 square foot home in South Tampa, Florida increased to $385,000 and, holding all else eq..
About 60 percent of the funds was directed at reducing the supply of drugs through domestic law enforcement and interdiction. Some critics of this approach argue that supply-side approaches to reduce the drug supply actually help drug producers.
Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). a. Derive his demand functions for x and..
During the summer of 1997, Congress and the president agreed on a budget package to balance the federal budget. The "deal," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997, contained substantial tax cuts and expen..
A medium sized city is considering offering exclusive rights to CableNet, a cable television carrier. The demand function for cable in this city is: P= 28- 0.0008Q; The resulting marginal revenue function is: MR = 28 - .0016Q ; Cablenet's marginal co..
Define optimistic, most likelys, and pestimistic scenarios buy using both optimistic, both most likely and both pestimistic estimates. Use a life of 4 years as the most likey value. What is the present worth for each scenario
Modifying a product to increase its "value added" benefits customers and can enhance supplier profits. For example, suppose an improved version of a product increases customer value added by $25 per unit. (In effect, the demand curve undergoes a p..
If the economy is at point C, what is the cost of one more automobile Of one more forklift Please explain where you get the numbers from to solve for each Explain how the production possibilities curve reflects the law of increasing opportunity cos..
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