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On january 1, professor smith made a resolution to lose some weight and save some money. He decided that he would stictly budget $100 for lunches each month. For lunch he has only two coices, the faculty club, where the price of a lunch is $5 and Alices Restarant, where the price of lunch is $10. every day that he does not eat lunch he runs 5 miles. A. assuming that professor Smith spends the $100 each month at either Alices Restaruant or the club, sketch his budget constraints. Show actual numbers on the axes. B. Last month Professor Smith chose to eat at the club 10 times and at Alices 5 times. Does this chose fit within his budget constraints? Explain your answer?
After reading about the Solow growth model, which concludes that continued economic growth requires continual innovation, and Schumpeter’s dynamic growth model, does the combination of these two models provide an adequate model of technological chang..
When banks borrow directly from the Fed, the interest rate on those loans is the. An increase in money growth will cause inflation to increase in. What is the purpose of the Fed's structure?
You have just been hired as the controller of Land’s End Hotel. The hotel prepares monthly responsibility income statements in which all fixed costs are allocated among the various profit centers in the hotel, based on the relative amounts of revenue..
Government control of price, output, entry of new firms, and quality of service in industries where monopoly appears desirable are known as
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
Using the fundamental equations from the general monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F in the long run. Also, state whether the home curren..
Sandy is planning her consumption over five periods during which she expects her income to be 4, 10, 16, 12 and 8. What is Sandy's permanent income? What is Sandy's marginal propensity to consume out of a temporary increase that boosts first period i..
Suppose that aggregate planned expenditure increases by $0.75 trillion for each $1 trillion increase in real GDP. If investment increases by $1 trillion, calculate the change in the quantity of real GDP demanded if the price level is constant at 105.
Maximizing profit for an economist is:
Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn. Renee needs 1 hour to wash the car and 2 hours to mow the lawn. Which of the following statements is correct?
Morgan Stanley and Goldman Sachs converted their charters to become commercial banks rather than investment banks as a result of the credit crisis. What advantages did they derive from this conversion? Were there any disadvantages from the change?
How will commercial airlines respond to the threat of new $27,500 fines for keeping passengers on the tarmac for more than 3 hours? What inefficiency will this create? I recently sold my used car. If no new production occurred for this transaction, h..
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