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Assume that the residents of a nation become more patient (experience a reduction in their time preferences).
a. What will happen to the interest rate in that nation? What will happen to the equilibrium level of investment in that nation? Explain your answers in a fully labeled graph.
b. Over time, how will the lower time preferences affect the levels of capital and income growth in that nation?
C2. Which harvester is better using the External Rate of Return (IRR) Method C3. Which harvester is better using the Simple Payback Method if the average recovery period (industry threshold) for this category of harvester is 3 years.
They argue that this will lead to lower prices for drugs because competitors will enter the market after the five-year period. Do you see any drawbacks to this proposal?
suppose two types of consumers exist, a more affluent group (1) with an estimated price elasticity for biscuits of -2 and a less affluent (2) with an estimated price elasticity for biscuits of -2.5. Pillsbury puts a posted price of a particular amoun..
Yo=1200 Y=C+I+G C=130+.5(Y-T) I=(-400)-(10R) G=150 T=50 1. Compute private savings 2. Compute public savings 3. Compute the value of the equilibrium real rate of interest (R) 4. Suppose G rises from 150 to 200. What is new R?
a consumer of two goods faces positive prices for both goods and has positive income. her preferences over consumption
an office receives 20 faxed orders every two hours.1 what is the probability that it will receive 8 orders in the
If the output changed to 75 units of bread and 60 units of butter, the profit of the butter firm would go up by $42. The profit of the bread firm would go down by $76. 50 units of butter which the consumed by the consumer.
A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.
The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold i..
What is the efficient method of production for Dewey, Cheetham, and Howe? Graph its production possibilities set. What is its production function?
The manager has been asked to determine the maximum level of net benefits and the level of Y that will yield that result.
What is psychological capital (PsyCap)? Briefly summarize the research to date on PsyCap and why might this provide competitive advantage to an organization?
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