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You have opened a retirement account that will pay 4% interest per year. You plan to deposit 8% of your annual salary into the account for 40 years before you retire. Your first year's salary is $48,000, and you expect your salary to grow 3.5% each year. How much will be in your account after you make the last deposit? What uniform amount can you withdraw from the account for 20 years beginning one year after your last deposit?
Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of..
Problem associated with second video: Demand with Cobb-Douglas utility function. What is the optimal consumption bundle for the workers? What utility do they obtain?. Graph the indifference curve that goes through the optimal consumption bundle. In t..
q.paolo currently has 100000 invested in bonds that earn him 10 percent interest per year. he wants to open a pizza
The short run for a company is
Consider the following panel data fixed effects regression model: Yit = B0 + B1Xit + Y2D2+ Y3D3i + +...Y4Dni + eit
Under what supply and demand conditions would an excise tax create a large incidence of the tax on suppliers and a small incidence of the tax on consumers? Explain how this works.
If the marginal cost of the separate products is high, a seller should consider _______ bundling instead of ________ bundling.
A university has a fixed number of parking spaces for students on campus. They are currently sold at a price that clears the market. Suppose there is a proposal that the price should be lowered and a lottery held to determine who may park on campus. ..
If a popular TV show on personal finance convinces more Americans about the importance of saving for retirement, the ________ curve for loanable funds would shift, driving the equilibrium interest rate ________.
q1. suppose the general public purchase 500 million in government bonds and pay for them by drawing cheques on their
Otto’s Autos buys cars for resale from the manufacturer at the price of $10,000 per car. Assuming there are no other costs, draw Otto’s total, marginal, and average cost curves. Suppose Otto launches a new ad campaign that costs $100,000. On a separa..
Please identify four policies the government enacted following the financial crisis. Evaluate what effect these policies would have on the economy from both a short-run and a long-run perspective. A definition of the measures used to determine econom..
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