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A car dealer is offering a choice between a $1500 rebate or 0% financing over 24 months. The price of the car is $11,000. A minimum down payment of 20% is required. What is the effective interest rate?
What are the major causes of currency crises, and how can countries prevent these types of crises? What should be done if a crisis occurs? Use the interest rate parity model of exchange rate determination to explain what policies should be followed d..
What is a time consistency problem, in general. What is the time inconsistency problem with inflation policy? What is the Fed’s Loss function?
q1. manipulate demand of price elasticity. suppose that 50 units of a good demanded at a cost of 1 unit. a reduction
Assume constant marginal costs of 25. Compute the equilibrium price, quantity, consumer surplus, producer surplus and if relevant deadweight loss for:
Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure.
Comment on the conclusions regarding the multiplier effect. Provide constructive critique, supporting your opinion by researching a source to back it up.
q1. pick a society and time in history you would consider that the vast majority were doing very well economically.
Consider the following scenario: A toxic waste dump in Alabama has seepage that leaks into the groundwater. Groundwater is used by local residents for drinking and cleaning, in addition to supplying water for irrigation of local agriculture. What doe..
illustrate what are short-run and long-run effects on aggregate price level and aggregate output. There is an increase in taxes on households. There is an increase in quantity of money. There is an increase in government purchases.
Suppose there are two industries, airlines (A) and breweries (B), and that the demand for secretatrial labor, E, in each industry is EA = 25 – wA and EB = 20 – 2 wB. If the supply of secretarial labor is E = 2 w, then what are the equilibrium wage an..
Provide examples of businesses taking advantage (profiting from) the recent drive to “go green” (environmental consulting, etc). What are the advantages and disadvantages of going green for a company? What are the differences between John Maynard Ke..
Explain why standardised products are desirable for international companies, and the circumstances that are likely to prevent its implementation?
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