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If the government reduced spending on everything, except military spending, the deficit would be reduced stimulating the economy and creating full employment. How is this true?
Assume that the six-month forward exchange rate between the US dollar and the euro today is $1.22 per euro. Assume also that the spot rate is $1.10 per euro. Then we can say that the euro is trading at a
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Are they likely to make economic profits initially? Can they continue to make economic profits in the long term? Why or why no..
Explain the 4 ways the Federal Reserve would increase the money Supply and explain and graph how this would impact interest rates, consumption, and investment, AD, GDP, Prices and Unemployment. (Make sure to include both the money and the goods graph..
What cost does an impact industry pay for capital. What is the total price of producing 120,180, and 240 units of output in the long run.
Assume a hypothetical economy in which the velocity is constant at 2 and real GDP is always at a constant potential of $4,000. Suppose the money supply is $1,000 in the first year, $1,100 in the second year, $1,200 in the third year, and $1,300 in th..
You are planning to purchase a house in 5 years and want to save for a down payment. If you deposit $5,000 each year into an account earning 3% interest, how much will have for a mortgage down payment?
A banks liabilities are
The present value of a perpetuity that pays $F every year when the annual rate of discount is i is? Consider a three-year fixed-payment security that has a present value of $1,000. If the annual rate of discount is 7 percent, the payment made at the ..
Elasticity-time! Calculate the elasticity implied by the information given (own-price, cross-price, or income), interpret the elasticity (“For a one percentage point change in…”), and tell me what the elasticity implies about the good or goods.
Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.
Discuss the predominant pricing strategy within the video game industry. Make sure to comment on the degree of market power (i.e., the ability to set price) possessed by firms in the market/industry. Consider the role of pricing practices such as pri..
Illustrate what is the highest possible beta approximate for the project before its NPV becomes negative.
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