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Nancy buys a house in 2000. He obtains a fixed 10% mortgage interest rate, and makes payments of $1,000 per month. The 2000 CPI is 90, the 2001 CPI is 90, the 2002 CPI is 100, the 2003 CPI is 110, and the 2004 CPI is 120.
1. What is the real mortgage interest rate in 2001, 2002, 2003 and 2004?
2. What are the values in 2000 dollars of Nancy's monthly mortgage payments in 2001, 2002, 2003, and 2004?
Due to the current slump in investment spending, Omar has been laid off from his programming job. His employer promises to rehire him when business picks up. What type of unemployment is Omar facing?
If there is a recessionary gap in the short run, then in the long run a new equilibrium arises when input prices and expectations adjust downward,
Assume the graph below represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. Draw the marginal revenue function for this firm.
VM is based on three root principles. A focus on objectives and targets A focus on the function A continuous awareness of value According to your text, what is VM and how is it used in an organization What are the benefits of VM
Is it price discrimination when a professional football team charges say,$150 per ticket for 50-yard-line tickets in the lower deck and $50 per ticket for upper-deck tickets overlooking the end zone?
Using the economic concepts that explain differences in wages, discuss any three of the following points.* Why does a chief executive earn more than a rocket scientist working for NASA * Why does a teacher earn less than a firefighter
Why might bargaining break down when parties negotiate to remedy a market failure and its associated externality?
Illustrate what policies can be designed to transform agricultural development and raise levels of living in rural areas in LDCs.
Find out at least two sources to help you solving the subsiquent questions about the air line company.
- perfume: A $100 bottle of perfume may contain $4 to $6 worth of ingredients - Jeans and "alligator/animal" shirts: The "plain pocket" jeans and the Lacoste knockoffs often cost 40 percent less than the brand-name items, yet the knockoffs are ess..
Quarter One - Consumer income has been on the rise and it is predicted to rise again in the first quarter of this year. Mexico and Canada have been forecast to have a very good first quarter also with the income of their average citizen on the ri..
What are the short- and long-term economic benefits and costs associated with our current high federal government budget deficits? Do you think the economic benefits outweigh the economic costs, or not? Why?
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