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Suppose the interest rate is 5% and that you are to receive three annual payments of $10,000, with the first payment one year from now, the second payment two years from now, and the third payment three years from now. What is the present value of this stream of payments?
If it makes sense that one type of labor can substitute for another in production, how can capital, a physical object, substitute for labor, a human being?
At the moment, the market is completely ignoring things like record US trade deficits and the widening current account deficit. It is also largely ignoring the possibility of Federal Reserve rate cuts. Traders and investors are instead focusing only ..
What determines price elasticity of demand for a product. key determinants of price elasticity of demand are as follows: i. Availability of close substitutes- gas stations across street, very elastic.
Firms A and B each produce 100 units of pollution. Firm A has a marginal cost of pollution reduction of MCA= 10+2QA. Firm B has a marginal cost of pollution reduction of MCB=3QB. The marginal benefit of pollution reduction is $150 per unit. What is t..
Which of the following can the Fed most quickly and accurately influence?
What will happen to Jill's consumption in first period when interest rate increases. Is Jill better off or worse off than before interest rate increase.
What are the necessary conditions for economic efficiency? In what four situations might a market fail to achieve ideal economic efficiency?
Assume that the state government is interested in subsidizing the local production of steel. The current price of steel is $1600 per ton and the government wants to provide a subsidy of $100 per ton. Use a diagram to indicate the pre-subsidy situatio..
The market demand for another product you are considering selling is Q(p) = 100 ? ( 1 )p and as the 2. only producer of this product your production costs would be C(Q) = 40Q. Given these market characteristics, what is the Lerner Index equal to (as ..
What is the role of developed countries in promoting development policies in developing countries?
Suppose GDP equals $9 trillion, consumption share is 6.3 and the government expenditure share is 1.8 suppose this economy has a budget surplus of $800 billion, taxes are 2.6, public savings is .8, private savings is .1 and national savings is .9 If t..
Illustrate what is the best measure of economic well being of individuals in society.
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