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Suppose you want to invest some money in the bank. Currently, the bank is paying a rate of 5.5% compounded annually. Assume inflation is expected to be 4.5% per year. After taking inflation into account, what is the real interest rate the bank paying?
Explain how difficulty will it be for the owner to plan for this new competitive threat.
Discuss the following situation (a) from the strictly legal viewpoint, (b) from a moral and ethical viewpoint, and (c) from the point of view of what is best in the long run for the company. Be sure to consider both short- and long-range consequences..
In this discussion, you will explain the role of the business cycle in government and private sector decisions. Data on GDP and economic growth are considered lagging indicators because they report information on what is already known. How reliable a..
Social entrepreneurs generally attempt to create win-win situations and make the world a better place. Is making the world a better place ethically incompatible with making a profit? Why, or why not? Can you identify a firm with a high degree of focu..
Suppose that the government levies a tax on oil companies equal to a proportion of the value of the company’s oil reserves. (The government assures the firms that the tax is for one time only.) According to the neoclassical model, what effect will th..
Identify the peculiarities of tourism as a product compared with everyday goods and services which consumers may demand. Why is repurchase consumer decision making particularly important in travel and tourism demand.
Suppose you are hired by the Martin Guitar Company as an economic consultant. You estimate the demand to be Q=8000-2P. Suppose the supply of Martin Guitars is given by Q= -2000+3P. What is the equilibrium price of Martin Guitars? What is the equilibr..
q. a county is considering using a piece of park land for one of two alternative recreation projects. project s would
There have been significant discussions on the government's fiscal policy during the Great Recession. In particular, many did not like the government's actions in salvaging the auto industry in providing guaranteed loans to GM and Chrysler. What is y..
What factors will contribute to the riskiness of these bonds.
In a local shoe factory, machinery used is outdated and takes too much labor time to make a pair of shoes. Inexpensive imports are flooding the market and it is increasingly hard to compete with imported shoes on price. Briefly discuss steps the mana..
In 1980, per capita GDP of Rwanda was about $728 and in 2010 about $1,025. Calculate the average per capita GDP growth rate of Rwanda from 1980 to 2010.
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