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Some places limit the number of hours that alcohol can be sold on Sunday. Is it possible that this sales restriction could help liquor stores? Use game theory to construct your answer. Hint: even without restrictions on the hours of operation, individual stores could still limit Sunday sales if they wanted to.
The present spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate.
The demand curve is given by the equation QD = 1150 - 100p and the supply curve by QS = 100p - 50 1150 - 100p = 100p -50 Find the equilibrium price and quantity.
A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immediately, what is this grand prize really worth? Use a discount rate of 6%.
Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?
a. Use the theory of liquidity preference to illustrate in a graph the impact of this policy on the interest rate. b. Use the model of aggregate demand and aggregate supply to illustrate the impact of this change in the interest rate on output and ..
What are the issues surrounding the sovereignty of states and their governments' ability to regulate their economies? In what ways is economic globalization responsible? In what ways is it not responsible?
What are the determinants of imports - Clearly explain how each of the determinants affects the level of imports.
Compute the substitution effect and income effect associated with a multiplicative price increase Δ in pY, that is, multiplying pY by Δ>1, for the case of Cobb-Douglas utility u(x,y)= xαy1−α.
How your organization's production function is related to its marginal product of labor? How your organization's marginal product of labor is related to the value of its marginal product?
Fiscal policy is most effective in a fixed-rate system when capital is perfectly mobile because there is no domestic “crowding out.” Explain what is meant by the term “crowding out,” and then critically evaluate the previous statement using the IS/LM..
The government taxes each old person T goods in each period, payable in fiat money. it destroys the money it collects - Find and explain the rate of return in in a monetary equilibrium.
How does the behavior of the banking system in lending money influence the money multiplier between base money (cash and reserves) and the actual money supply (M1)?
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