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A. Today you make an investment of $500 with a nominal interest rate of 6% compounded annually. You expect the rate of inflation to be 2% each year over the next three years. What is the real interest rate you will make on your investment? What is the future value of your investment in three years?
B. Compare Perfect competition, monopoly and monopolistic competition. How are these three types of markets similar? How are they different? (Hint: Do not just list the definitions of these types of competitive markets. Be specific in how they are alike and how they are different, and use examples to illustrate your answer.)
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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