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Your auto insurance premium of $2100 is due today. You insurance company is giving you the "easy financing" option of making 12 monthly payments, with the 1st payment starting today. The interest rate on this financing option is 23.00% with monthly compounding. What's the monthly payment amount?
Suppose that money demand is given by Md = $Y(0.25 - i) as long as interest rates are positive. The questions below then refer to situations where the interest rate is zero. What is the demand for money when interest rates are zero and $Y = 80? Once ..
Write a thorough analysis of unemployment, defining the various types of unemployment, full employment, and the natural rate of unemployment. Describe the impact of unemployment on the economy and your solutions to lower unemployment. Remember to cit..
For a single consumer, show the demand curve for three illness, L1, L2, and L3, where the degree of illness increases as the subscript increases from 1 to 3. Need the demand curves be parallel? Could they ever possible cross?
Using one or more recent examples reported in the U.S. media, explain why the state plays a key role in shaping economic processes.
Suppose policy makers pass a budget that results in an increase in the budget deficit. Also assume that this fiscal policy action results in a reduction in the saving rate. To what extent will this reduction in the saving rate cause permanent changes..
Suppose that a tariff is imposed on imports of minivans. Show graphically what the effect is in terms of price and quantity of imports. Be sure that your graph is completely and correctly labeled. What determines how much of the tariff is paid by the..
State the constrained optimization problem that allows you to find the Pareto Optimum allocation for the one period closed economy model.
When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that government have for promoting better outcome are:
When he was born, Bob was given a $10,000 30 year bond by his uncle. Ben, Bob’s brother wants to buy the bond for $6,000. Bob is currently 25 years old. US Treasuries are currently paying 6.5%. According to the present value of money should Bob accep..
When the United States recovers from a recession, this tends to shift Germany's AD curve _________________, which _____________ Germany's price level. Assuming that the increase in the value of the dollar in the foreign exchange market has a greater ..
The production possibilities frontier model shows that
If the price of good X decreases by 2.1% and the price elasticity of demand is 0.4, find the percentage change in quantity demanded and the percentage change in revenue. If you want to increase revenue should you increase or decrease the price in thi..
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