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Q1. Suppose you want a lump sum payment of $100,000 three years from now. Rounded to full dollars, how many current dollars will you have to invest today at an 8 percent interest rate to accomplish your goal?
Q2. If the elasticity of Malaysian net capital outflow with respect to the real interest rate is very high, will this increase in private saving have a large or small effect on Malaysian domestic investment?
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry. Explain?
Now discuss the fact that deflation is the central bank's worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy?
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
Calculate and interpret the own price, cross price, and income elasticity of demand.
Suppose production price is 20. The firm views that price as beyond its control.
The scholarship is to provide $5,000 the first year increasing by $500 each year thereafter to a maximum of $10,000 per year. On the assumption that the scholarship will start at the end of the first year and continue forever, what endowment must ..
A business traveler to Germany who, upon deplaning in Berlin, uses an airport ATM to withdraw 100 Euros from her U.S. bank would receive which kind of exchange rate?
The introduction of a stylish line of Toyotas makes some consumers prefer foreign cars over domestic cars. d. The central bank doubles the money supply. e. New regulations restricting the use of credit cards increase the demand for money.
Illustrate what is the maximum amount you will pay for the new process. Suppose that the new process must pay for itself by the end of the first year.
If lots of people want Euros also Euros are in short supply also a few people want Japanese yen also yen are in plentiful supply the euro is likely to.
Calculate your price elasticity of demand of widgets. What can you say about your price elasticity of demand of widgets?
If summer's supposition is correct, then we should expect for wealthier countries to have cleaner environments other things equal.
Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
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