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What Rate for Inflation Targeting? An economist suggests that what matters for financial markets is a stable inflation rate, not a zero inflation rate. As long as inflation is stable, all individuals can take this into account in their actions.
a. What are the costs associated with a stable inflate
A cannery is considering installing an automatic case-sealing machine to replace current hand methods. If they purchase the machine for 3800 in June, at the beginning of the canning season, they will save 400 per month for the 4 months each year.
Can you figure out the exact cutoff for the interest rate between profitability and nonprofitability 2. According to an old myth, Native Americans sold the island of Manhattan about 400 years ago for $24.00 . If they had invested this amount ay an ..
What is the own price elasticity of demand when Px = $354? Is demand elastic or inelastic at this price? What would happen to the firm's revenue if it decided to charge a price above $354?
Suppose that demand changes to Qd =600 -2P. Find the equilibrium price and quantity, and show this on your graph.
Assume that $5000 is deposited today, three years from now, six years from now, nine years from now, and twelve years from now in a savings account which earns 5% annual interest. What is the balance at the end of year 13
Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon to $3.50 a gallon. Your usage of paint drops from 35 gallons a month to 20 gallons a month. Perform the following:
Speculate as to why there has been an increase in reporting requirements in the last ten (10) years. Also, give your opinion on whether the increase in reporting requirements has improved investors' and creditors' confidence in corporations. Provi..
In the model of monopolistic competition, we say that there is product differentiation. What does this mean, and how does it differ from the assumption of homogeneous goods in perfect competition?
You have just received a proposal from the marketing department that your firm's advertising budget should be increased by 20% from its current level of $250,000. The marketing department feels the proposed increase will stimulate sales and enhanc..
consider the following production function: q= 8lk+ 4l^2-(1/3)^3, Given the following expression for the marginal productivity of each input: MPl= 8K+8L -L^2 and MPk -8L Assuming capital is plotting in vertical axis and labor is plotting in horizont..
Explain which country has a comparative advantage in the production of hats and which country has a comparative advantage in the production of beer.
Suppose that the price of salt rises from 15 cents to 17 cents a kilogram. The quantity demanded decreases from 525 kilograms to 475 kilograms per month, and the quantity supplied increases from 525 kilograms to 600 kilograms per month.
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