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Suppose that you never carry cash. Your pay check of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero.
a. What is your average money balance during the day period?
b. how would each of the following changes affect your average monthly balance?
i. you are paid 4500 twice monthly rather than $1000 each month
ii. you are uncertain about your total spending each month.
iii. you spend a lot at the beginning of the month and little at the end of the month.
iv. your monthly income increases.
Consider these bundles: Bundle A: 2DVDs and 3 Cds; Bundle B: 3 DVDs and 1 CD; Bundle C: 1 DVDs and 3 CDs. Which of the following violates the assumption of non satiated preferences?
Contrast comparative and absolute advantage. Is it possible for a country to have a comparative advantage in producing a good without also having an absolute advantage? Explain.
So if trade barrier is reduced the Chinese economy will go down also affects the economy of the whole world. Do you agree or disagree with this argument.
Due to monetary policy and fiscal policy intervention by the Federal Government since the 1950s business cycles
Why is it in the U.S we do not consume all of our current output instead of sacrificing some present consumption for investments?
q1. assume that the popular car dealer in your area sells 2.50 of the entire vehicles. if all other car dealers sell
Describe the coefficient of correlation between the two variables. Interpret the value. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms.
Whenever there is an outflow of funds from any of the balance of payments accounts, it is recorded as a __________ , and called _______ .
Suppose that Ellen has $I to spend on goods x and y: The price of good x is px and the price of good y is p y: Write down Ellen's budget line and draw it. Indicate the slope, as well as the vertical and the horizontal intercept.
Suppose that the Federal Reserve purchases $10 million in securities [T-bills] from First National Bank by increasing FNB’s account at the Fed. Would you answers change if rather than a purchase of securities, a customer deposited a check for $10 mil..
Please compare how the Solow model views a fall in the population growth rate with the many issues that countries with falling population growth rates face in the real world. Be sure to describe an issue that aging economies face.
in 1981 a boston-based gas station owner set the highest gasoline prices in the nation. during that summer he charged
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