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What is the discounted present value of a prize that gives you two installments of 1000 dollars (each), if these payments are made in five and six years from now, and the interest rate is 0.05?
a) $1,467.84
b) $1,508.34
c) $1,529.74
d) $2,123.44
If expected inflation is constant and the nominal interest rate increases, how does the real interest rate change?
Describe the concept of opportunity cost with example. What would be your opportunity cost of taking on-line classes to get a degree at your University as compared to taking classes at traditional day schools at your University?
Assume all markets are competitive, the product price is p = $2 per unit, the wage rate is w = $16 per hour and the firm's production function is q=E(36?E), where E is the level of employment and the firm's fixed costs are zero.
Suppose that U.S. prices rise 4% over the next year while prices in Mexico rise 6%. According to the purchasing power parity theory of exchange rates, what should happen to the exchange rate between the dollar and the peso?
The cost of energy for operation high lift pumps in a water distribution system was $1.4 million for the first three years. Beginning in year four, the cost increased by $30,000 each year for the next 12 years. The cost of the energy is at an interes..
Among which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
A. not say anything about the average annual rate of growth. B. concludes that its average annual rate of growth is about 5.5 percent. C. concludes that its average annual rate of growth is about 2 percent. D. concludes that its average annual rate o..
The current government deficit: include how current fiscal policy has affected the deficit, and how the country should deal with any problems you identified?
If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal policy must it use? If a country wants to fix its exchange rate at a rate that is higher than the market rate, what monetary or fiscal ..
Why are trade negotiations usually mercantilist, ie, why does country A agree to reduce its trade barriers in exchange for country B also agreeing to lower trade barriers, when economic theory says that both A and B benefit
Is it unethical for the American government to engage in global trade with countries that degrade women, imprison political dissidents, censor information, and the like?
A restaurant owner has the following short-run production function: Draw a table showing total, marginal and average product up to an input of ten workers, and plot these on a graph. If workers can be hired for $40 per day and the average meal is $6,..
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