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What do you think about the Supply-Siders ideas? Do you think supply side policy could fix the economy? Describe how Supply Siders want to use policy tools and how it would work. P.S. If you previously said that you thought another school of thought could be successful, it doesn't mean that you have to think the Supply Side viewpoint is wrong. Each school of thought could have it's own pros and cons. Maybe more than one could be successful.
Suppose that the Mexican Peso is trading at 10 pesos per dollar, the interest rate in the US is 5% and the interest rate in Mexico is 4%. What must happen to the exchange rate in order for the interest rate parity condition to hold?
The following is a cost function for clinic visits in a small inner city clinic: If the price per visit is given to be $25, at what level of visits will the maximum profit position be? What are the profits at this level? What is the quantity supplied..
Consider an employee who is considering embezzling $10,000 from his employer. The worker is risk neutral and estimates that the likelihood of being caught is 1%. There are two possible punishment mechanisms available to the court- monetary punishment..
Consequently, the firms’ top accountants and financial manager argue that the firm should raise the price of the product 10 percent above its original target to help recoup some of these costs. Does such a strategy make sense? Explain carefully.
A $10,000 par value bond with coupons at 8%, convertible semi annually, is being sold three years and four months before the bond matures. The bond is redeemable at $C, and purchase will yield 6% convertible semi annually to the buyer. The price of t..
An individual makes $64850 per year. If they move to a city where prices are on average 20 percent lower, and they continue to make the same salary, then what is their purchasing power parity adjusted income?
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
If free trade increases a domestic firm’s access to the global market place such that it can double all factors of production and realize a threefold increase in output, what happens to its average unit costs and its ability to compete in the global ..
Assume mortgage payments of $1000 per month for 30 years and an interest rate of 0.5% per month. What initial principal or PW will this repay? Assume annual mortgage payments of $12,000 for 30 years and an interest rate of 6% per year. What initial p..
You’re fairly well up the food chain at the U.S. EPA in the summer of 2015 (you got fast-tracked as a result of all you learned in your Spring 2015 environmental economics course) and have been asked to put together a set of policies to protect ecosy..
Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..
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