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Nettie can produce either 8 cupcakes or 4 hamburgers. Becky can produce either 4 cupcakes or 8 hamburgers. Suppose that Nettie and Becky each specialize in the production of the good for which they have a comparative advantage and decide to trade. The terms of trade are 1 cupcake for 1 hamburger. After trade, how many hamburgers will Nettie consume if Becky consumes 4 hamburgers? How many cupcakes will Becky consume if Nettie consumes 4 cupcakes?
For each stock in the stock market, the number of shares sold daily equals the number of shares purchased. That is, the quantity of each firm's shares demanded equals the quantity supplied
Why would the simple Keynesian consumption function predict that this strategy would work and the nominal interest rate cannot fall below zero. What might the Fed do to try to achieve the optimal real interest rate you calculate in Part b?
The market for paper in one region of the US is characterized by the following demand and supply curves: Qd=160000-2000P Qs=40000+2000P (Q is 100-pound lots) The marginal external cost of the effluent being dumped into the local streams ..
Every year, billions of dollars' worth of illegal drugs and alcohol are produced within the boundaries of the United States. Official US GDP estimates have excluded the value of this production because the data have been unavailable to the governme..
Take a look at the Productivity Growth Rate over the past twenty years and over last five years, and describe the macro economic implications such as Potential GDP, GDP growth and inflation,
prepare a project summary that includes the following an overview of the projects objectives and scopea list of tasks
Money Market Prices The rate on a particular money market instrument, quoted on a discount basis, is 5 percent. The instrument has a face value of $100,000 and will mature in 40 days. What is its price?Money Market Prices The rate on a particular mon..
An upscale bistro in a small town charges higher prices for the same menu items at dinner time than at lunch time. Does the bistro necessarily practice price discrimination? Explain your answer. What is the social cost of a monopoly? Explain.
If the reserve ratio is 15 percent and commercial bankers decide to hold additional excess reserves equal to 5 percent of any newly acquired checkable deposits, then the relevant monetary multiplier for the banking system will be:
If the yed for a product is equal to one , is it a basic or a luxury good? If ?Qd% does not change , what does it mean for the Yed?
A special-purpose machine tool set would cost $30,000. The entire capital expenditure ($30,000) is to be borrowed with the stipulation that it be repaid by two equal end of year payments at 15% compounded annually. The tool is expected to provide ..
Explain how bank losses from mortgage backed securities could lead to an investment bank becoming insolvent and going bankrupt. Your explanation should use a somewhat realistic T-account (see thenotes), the concept of leverage
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