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Q. Suppose people in our overlapping generation's model have the opportunity either to hold at money with complete safety or to lend to someone who may never repay the loan. The chance of such a default is 10 percent. Assume a stationary monetary equilibrium in which the population grows at a net rate of 8 percent and the at money stock fixed. What real interest rate will be charged to the borrower if people are risk neutral? What can you say about the level of the real interest rate if people instead are risk averse?
Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics,
Suppose the price of clerical time remains at $7.50 per hour. How high would the price of an hour of computer time have to be before the firm would find it worthwhile to use only clerks to process the payroll?
Illustrate what are different types of unemployment and how do they affect economy. Illustrate what is inflation. Illustrate what is deflation.
Which of the following is not an example of a "lag" that diminishes the potential impact of fiscal policy?
Suppose that you are the owner and operator of a perfectly competitive firm with the following total cost function.
Fifty years later, the federal resources for public education shows approximately 10% of the public education budget.
the australian government administers two programs that affect the market for cigarettes. first media campaigns and
Suppose Microsoft chooses to produce 80 million copies of software per year and sells copies of software to retailers at $199 per copy. Now consider problem of a retailer like Circuit City or Best Buy.
Why does the concept of money neutrality imply that monetary policy to stimulate investment will be ineffective in the long run?
Elucidate the differences among a currency board, a fixed exchange rate system and a pegged exchange rate.
Illustrate what is the estimated KWH also illustrate what is the interval which would contain 95 percent of such estimates.
You do not incur any cost to produce goods you sell and thus your profit equals selling price if you make a sell. Or three sellers do not have any costs either.
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