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What are microeconomic choices and macroeconomic choices? Give an example of each.
The stocks of Walker Industries have gained considerably following the announcement of a merger with Vicenza Inc. Walker Industries is a family-owned firm that has been in the diamond jewelry business for decades. Vicenza is a luxury jewelry company ..
In the discussion of exchange rate overshooting, we assumed that real output (Y) was held constant. Assume instead that an increase in the money supply causes
You just received a car loan for $20,000. The terms of the loan are for 5 years at 6% annual interest, compounded monthly. What is your monthly payment? For the first month, how much of this payment goes to principal? For the first month, how much of..
Solve the issues as to whether Jean has any rights, obligations, and remedies in the circumstances.
Assume that Robert is willing to work for 40 hours per week no matter what is the wage rate, so his labor supply curve is vertical at 40 hours. The demand curve for Robert is given by the equation: What is Robert’s equilibrium wage rate and hours wor..
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
Stereo Inc. sells a stereo system for $100 down and monthly payments of $90 for the next 3 years. If the interest rate is 2.25% per month, find:
Increasing returns to scale in production means. The demand curve facing a price-making firm is. In the long run all production inputs are variable. Decreasing returns to scale prevail when output increases by a proportion that is smaller than the pr..
Suppose Robina Bank receives a deposit of $53,589 and the reserve requirement is 5%. What is the amount that Robina Bank must keep on hand as required by the Federal Reserve (Fed)? What is the amount that Robina Bank will have in excess reserves from..
Explain how much must government spending increase to eliminate the GDP gap.
The government raises taxes on business profits causing real investment to fall. This occurs because businesses find expansion in plant and equipment less attractive when profits are reduced. The reduction in real investment decreases short-run aggre..
As with most things the UN puts out, all of these counter terrorism recommendations are so broad in scope that they essentially say nothing at all. With that being said, there will be major challenges to improving information sharing.
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