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Question: An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the U.S. before the loan was fully repaid. At the end of 3 years, at the time of the third payment, the bank agreed to reduce the interest rate on the remaining debt from 8% to 7%. What was the amount of the equal annual end-of-year payments for each of the first 3 years? What was the amount of the equal annual end-of-year payments for each of the last 3 years?
Consider the Grossman and Rossi-Hansberg model of small open economy. There are two sectors x and y, both of which are competitive. There are two factors: unskilled labor, skilled labor. A production of good j requires a continuum of tasks by unskill..
"Is the automobile industry in the United States competitive? Try to answer this question considering the recent trends in the automobile industry around the world." Discuss.
The jurors of a summary jury trial are usually not aware that their decision does not have a binding effect. The U.S. constitution has one indirect and three direct sources of law. The legislative branch is charged with interpreting the laws in the c..
Imagine that you own a bagel shop, which you visit once a day. A club charges a flat fee for an open bar (all-you can-drink). Describe the moral-hazard problem.
How will changes in the quantity supplied as a result of your pricing decisions affect marginal cost and marginal revenue and besides your pricing decisions, what are your suggested nonpricing strategies? What nonpricing strategies will ..
problem cost functions.consider a firm with average cost function acy 1y1y.a. what is the firms total cost
Presume the foreign and domestic interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Describe what effect this will have on the exchange rate. Also explain what should occur for the interest parity condit..
Critics of traditional welfare programs often argue that a downside of traditional welfare programs is that when the government gives lower income people money, it causes them to work less. Compare and contrast the theoretical implications on lab..
Are people gigging because that is the only thing that they have been able to find in a stressed economy? Are they making enough to not only get by but to thrive? Are they paying taxes on this income?
Deficits and investment: Suppose the government decides to reduce taxes today by 1% of GDP, financed by higher borrowing.
How have changes in Employment Insurance changed the income gap between the richest and the poorest Canadians?
expectations on how rivals will respond are important considerations when a firm decides to change the price it charges its customers, no firm controls more than a 10% share of the market
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