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If a financial asset has an expected return that is greater than what is necessary to compensate for its risk, what will bring the return back in line with equilibrium?
A recent study indicates to the long-run average cost curve for cellular telecom companies are basically flat. Illustrate what do you expect to happen to industry output.
Suppose that the t-account for first national bank is as follows: Assets liabilities Reserve $100.000 Deposits $500.000 Loan 200.000 Bonds 200,000. By how much would the money supply change if First National, like all other banks decides to maintain ..
When the Framers were designing the federal government, they believed that the House of Representatives would be “the people’s” branch of government. Nowadays, however, many critics say that the House would be better described as “the insiders’” bran..
An open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders..
Illustrate what amount of profit does the industry fail to pick up by refusing to increase output by one unit
Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.
A typical economy is described by the following equations: • Y = K 0.5 L 0.5 (production function) • b) s = 0.2 (saving’s rate) • c) d = 0.1 (depreciation rate) Using the Solow model, answer the following questions: a. What are the steady state value..
If current GDP is 8500, the economy is in long and short run equilibrium.
He wishes to accumulate $30,000 in a savings account in 5 years. If he wishes to make a single deposit today and the bank pays 0.2% compounded annually on deposits of this size, how much should he deposit in the account
q1. sam purchased a 5 year treasury note with a 1000 face value and a 7.5 coupon rate. with the help of excel
Minimum efficient scale will increase if fixed costs increase. With the opportunity for beneficial learing , a firm's lerning curve is upward sloping. The percentage change in profit that results from a 1% change in units sold equals margianl profit...
Suppose that a firm's only variable input is labour. When 50 workers are used, average product of labour is 50 and marginal product of labour is 75. Wage rate is $80 and total cost of fixed input is $500. Illustrate what is average variable cost. ..
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