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What would the LM curve look like in a classical world? If this really were the LM curve that we thought best characterized the economy, would we lean toward the use of fiscal policy or monetary policy? (You may assume your goal is to affect output.)
What is meant by an efficient security market? There are various views that are put forward in the paper which point to a common idea of market efficiency. Elaborate on these views. Explain how is the efficient market hypothesis associated with th..
Which of the following would be his best business options, depending on what he is willing to risk?
Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.
Assume that a country's production function is Y = AK^.3 L^.7 . The ratio of capital to output is 3, the growth rate of output is 3 percent, and the depreciation rate is 4 percent. Capital is paid its marginal product.
Show that when the condition in Proposition 13.3 is satisfied, the optimal growth path satisfies the transversality condition and yields a finite level of utility for the representative household.
A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due in 1 month. The mall's owner plans to sell the property in a year and wants rent at that time to be high.
Consider the following classical inventory problem. A retailer must decide the quantity Q to order periodically to minimize expected annual cost. The retailer faces demand of D units per year and every order that is placed incurs an order processi..
Suppose 1 year Treasury-bills were currently yielding 5.5%. Also suppose that a bank estimated that a particular loan applicant had a 30% chance of defaulting on a one year loan and that in the event of default the bank would recover only 25% of i..
Suppose the stock of capital and the workforce are both increasing at 3 percent annually in the country of Wholand. At the same time, real output is growing at 6 percent. How is that possible in the short run and in the long run
Why might a tax on domestic consumption of resources critical for national security be a more efficient approach than barriers to imports?
an alumnus of West Virginia University wishes to start an endowment that will provide scholarship money of $40,000 per year beginning in year 5 and continuing indefinitely. The donor plans to give money now and for each of the next 2 years.
According to the News on page 677, what percentage of retail jobs would be lost if the minimum wage were increased to $9.50. Obama Wants $9.50 Minimum Wage (Crains)- When Barack Obama and his fellow Democrats take power in Washington.
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