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You deposit today $1500 in an account that pays 1.7% per year. For the next few years you will keep making deposits 8.4% larger than the previous one. What will be the balance on the account after 6 deposits?
Consider the following interaction between two entrepreneurs (players 1 and 2) who are working on a joint project, and a venture capitalist (player 3) who is a potential investor in the project. First, player 1 decides whether to devote high or lo..
The total costs of a firm under perfect competition is given by the equation TC = 5,000 + 4Q + 2Q^2 and the market price is $100 per unit.
One of the goals of macroeconomic policy is to reduce the severity of business cycles. Q. If the severity of business cycles were reduced, what would be the effect on each of the four types of unemployment and on the unemployment rate as a whole
If planned investment increases by nine dollars and disposable income increases by ten dollars, what is the marginal propensity to consume?
Bob and Dexter share a dorm room. Bob is a smoker but Dexter does not smoke. There are no laws that prohibit smoking in the dorm rooms. The benefit of smoking is worth $250 to Bob, but the smoke imposes a $500 cost on Dexter.
A consumer, D Carroll, spends all of his income on 2 goods X and Y. The 2 goods are both normal but are not complementary. The price of good X is reduced but the price of good Y is unchanged. The consumer continues to spend all of his income on th..
Describe the cutthroat competitors reasons for not raising or lowering his price, thereby accounting for the kink in his demand curve.
The Affordable Care Act signed into law on March 23, 2010 requires individuals to be enrolled in a health insurance plan or face monetary penalties. This is known as the individual mandate. What is the economic justification for such provision in..
Suppose that the officials in Ecoland have compiled the following data about their economy for last year:
Explain how can the abolition of cash fight inflation and reduce unemployment.
Concerned about the crowding-out effects of government borrowing on private investment spending, a candidate for president argues that the US should just print money to cover the government's budget deficit.
What has happened to U.S. household debt over the past three years? What has happened to U.S. household savings over the same time period?
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