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Q1. Suppose a consumer has an income of $500 and faces prices Px=5 and Pz=10. Write the equation for the budget constraint.
Q2. Suppose a given country experienced low and stable inflation rates for some point of time, but then inflation picked up and over the past decade has been relative high and quite unpredictable. Explain how this new inflationary environment would affect the demand for money according to portfolio theories of money demand, What would happen if the government decide to issue inflation protected securities.
Projects A requires an initial outlay of $1000 and yields $41200 in 4 year's time. Project B requires an outlay of $30 000 and yields $35 000, after 4 years. Which of these projects would you choose to invest in when market rate is 3 percent."
At what quantity of output does marginal cost attain its minimum value? At what quantity does average variable cost equal marginal cost?
Explicate why the government expenditure multiplier is different from the tax multiplier.
How much will a $34,000-per-year college cost 15 years from now if inflation is at an annual rate of 6.5%?
The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School
Explain how can be expected to happen to quantity of labour hired if minimum wage is increased next year. Be sure to explain in words illustrate what is happening on your graphs.
if income were hypothetically $0 aggregate expenditures would be $2,500. What is the marginal propensity to expend?
Indicate how Ford's management should use this information to make sound strategic decisions.
Explain how are protectionist policies from other nations predicted to affect China's relative supply and relative demand.
In a few sentences, what effect does the current supply and current demand have on this product.
Assume that the distribution of starting salaries for newly qualified CA. Find out the probability that the std error.
Based on this information, discuss industry concentration, demand and market conditions, and the pricing behavior of Kodak in the 1990s. Do you think the industry environment is significantly different today? Explain.
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