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Metal Stampings, Inc., can purchase a new forging machine for $100,000. After 20 years of use the forge should have a salvage value of $15,000. What depreciation is allowed for this asset in Year 3 for
(a) MACRS depreciation?
(b) straight-line depreciation?
(c) double declining balance depreciation?
Andrew thinks the government should, most of the time, butt out. He thinks the economy can work things out best on its own and that human judgment is just too flawed to apply to such important things as people's incomes and spending ability. Andrew w..
Suppose the economy wants to satisfy the Golden Rule (i.e., maximize per capita consumption (c)), derive the saving rate that would achieve this.
Compare and contrast the following exchange rate systems:
A manufacturer of small plastic injection molded parts (caps, closures, fitments and pipettes) was experiencing static electricity problems during various steps in their molding and handling operations. The static caused the plastic parts to cling to..
Survey collects data from subjects who respond to a series of questions about behaviors and opinions. Should survey format allow individuals a level of anonymity? Why or why not?
In economics two schools of thoughts have emerged regarding the aggregate supply curve. The Keynesian paradigm suggests that the Short Run AS better describes production in the economy (prices are generally sticky) while the classical school defends ..
Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. At an appropriate level, th..
Explain how has American Express Leveraged its brand into customer segments and created value through different card and program offerings.
The classical principle of monetary neutrality states that changes in the money supply do not influence ________ variables and is thought most applicable in the ________ run. According to the quantity theory of money, which variable in the quantity e..
The law of demand implies that when the price of a good rises, people buy less of it. This makes the demand curve slope monotonically downwards. But take a stock on the rise; might there not at least be one tendency for people to buy more of it under..
Suppose Sweden produces only trucks and camcorders. The resources that are used in the production of these two goods are specialized—that is, some resources are more suitable for producing trucks than camcorders, whereas others are more suitable for ..
How do automatic stabilizers affect budget deficits and surpluses? How would automatic stabilizers be affected by an annually balanced budget rule? Why do automatic stabilizers minimize the lag problems with fiscal policy?
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