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Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75%. Assume that the price of the goods $1 in both periods. Suppose that the household decides to consume $26,000 in period 1 and $32,000 in period 2. Now suppose that the interest rate falls to 50%, and the household decides not to borrow or lend at all. Is the household better off or worse off with the higher interest rate?
Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and maintain separate record keeping syste..
Other than economies of scale, Illustrate what would you consider to be barriers to entry into a market. Are these barriers the same for all market structures.
What is the inflation rate in Home? In Foreign? What is the rate of change in the nominal exchange rate? Which currency is expected to appreciate? At what rate? Explain.
Assume you are the general manager of a concrete mixing and delivery facility located in Texas. Your company purchases the raw materials for concrete, mixes the concrete according to customer specifications,
Under the Physicians' cooperative model, if the supply price of physicians were to rise, how would this affect the equilibrium staff size in the open-staff case How would it affect the optimal staff size in the closed-staff case
Tariff and non tariff barriers exist in all nations, either independently or as part of a multicountry integrated economy. Present arguments that defend the use of trade barriers and arguments against the use of trade barriers.
what are the highest and lowest payments from the writer that the beekeeper- farmer team will accept for the sixth day Assuming that the farmer can dispose of $7 from the writer as she wishes, what range of payments will the beekeeper accept
fall in demand, high unemployment etc but how can I understand the similarities (or differences) more deeply? Can you help explain.
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced. Determine the GDP price..
In August 2002, preliminary information showed that payroll employment increase 39,000, household employment increase 429,000, and the unemployment rate fell from 5.9 percent to 5.7 percent.
Illustrate what economic events or changes will "shift" demand and supply curves, and separately "move" demand or supply along their respective curves.
The increase of the real money supply by 10 percent by the Federal Reserve when the unemployment rate rises by 1 percent is an example of
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