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Why one nation experiences economic growth and another does not is a question that has intrigued economists since Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. Explain why each of the following would limit economic growth.
1. The politically connected elite secure a large share of a country's output and put the proceeds into foreign banks.
2. The national philosophy is "Live for the moment and forget about tomorrow."
3. The government closes all of the schools so more people will be available for work.
4. The country fears military invasion and spends half of its income on military goo
What is an equilibrium price and quantity? Imagine that as a result of a government tax cut, aggregate demand becomes higher by 50 at every price level. Identify the new equilibrium. How will the new equilibrium alter output? How will it alter the pr..
Draw a conventional aggregate demand curve on a graph. Then add three different aggregate supply curves, labeled
The bonds mature in 7 years, have a face value of $1,000, and a yield to maturity of 10%. What is the price of the bonds?
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As the drivers of globalization continue to pressure both the globalization of markets and the globalization of production, we continue to see the impact of greater globalization on worldwide trade patterns. HSBC, a large global bank, analyzes these ..
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Rental rate of Capital? Marginal productivity of labor? To minimize costs Mitsubishi should hire ca..
What is the relation between Nash equilibrium and ESS?
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The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. How can you best explain why
Imagine you are employed by a large city police department as the leader of the digital forensics division.
Gentrification [increases / decreases / does not change] the price of low-quality housing because it [increases / decreases / does not change] downward filterin
If Big Fred's has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is the WACC?
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