Helen just bought a house for $250,000. Earthquake insurance, which would pay $250,000 in the event of a major earthquake, is available for $25,000. Helen estimates that the probability of a major earthquake in the coming year is 10 percent, and t..
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the government wants to adopt a fiscal stimulus, but is worried about raising the budget deficit, so, it decided to raise expenditure and taxes by $200 each, what will happen to equilibrium GDP? Creat a new multiplier model graph and show separate..
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Now, test H0: f2 = 0, f3 = 0, and f4 = 0 in the model Price = f0 + f1assess + f2lotsize + f3sqrft + f4bdrms + u The R-squared from estimating this model using the same 88 houses is .829. iv. If the variance of price changes with assess, lotsize, sqrf..
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The short-run aggregate supply curve (SRAS) can be written as follows: Y = Yf b (p - pe), where Y = real GDP, Yf = full-employment real GDP, p = price level, pe = expected price level, and b is a positive coefficient. The SRAS can be re-written as..
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Now suppose that there is a second ?rm with cost function c1 (q) above. Whichever cost function ?rm 1 chooses, the second ?rm will observe this choice and then have the option of entering the market or not. If he does not enter, ?rm 1 remains a mo..
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The proposed small offfice building in has 24,000 net square feet of area heated by a naturalgas furnace. The owner of the building wants to knowthe approximate cost of heating the structure fromOctober through March (six months).
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the manager of a firm that sells a "commodity" in a market that resembles perfect competition, and your cost function is C(Q) = Q + 2Q^2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the pr..
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Find the yield to maturity of the following securities: A. a security paying $ 1000 in one year, for which you pay $926 today B. a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today
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If the reserve ratio is lowered to 8%, what is the money multiplier and what is the maximum amount of money created by the same $5000 deposit, In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the money mu..
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She has three credit cards with the following loan balances and APRs: Card 1, $4,500, 21%; Card 2, $5,700, 24%; and Card 3, $3,200, 18%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's ..
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A company is considering buying a new bottle-capping machine. The initial cost of the machine is $325,000 and it has a 10-year life. Monthly maintenance costs are expected to be $1200 per month for the first 7 years and $2000 per month for the rem..
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A major advantage of production function is that it can be easily transformed into a linear function, and thus can be analyzed with the linear regression method.
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