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There have been proposals to allow firms interest on the losses they carry forward on their tax returns from one year to the next. That is, if a firm has a loss this year of $100,000, and the interest rate is 10 percent, i: can deduct $110,000 from its income next year (assuming that it is positive). Why might such a proposal be desirable? Would it completely resolve the problems that it is intended to address?
We make four assumptions about preferences: completeness and rankability, "more is better," transitivity, and consumers want variety. Briefly describe each assumption.
You have worked as a real estate agent for 10 years and are earning about $100,000 per year with your current agency. You prepared the following information to use in evaluating the financial feasibility of starting your own agency.
(The Human Body and the U.S. Economy) Based on your own experiences, extend the list of analogies between the human body and the economy as outlined in this chapter. Then, determine which variables in your list are stocks and which are flows.
How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in column 2.
Are you treated as an equal by earlier generations residing here?o What are others' attitudes toward you?o Why do you think they act this way?
An insurance company is considering issuing three types of fire insurance policies: (i) complete insurance coverage, (ii) complete coverage above and beyond a $10,000 deductible, and (iii) 90 percent coverage of all losses.
What would be More's best-reply response if attacked and More survives? What if Least did nothing? What would Most do when and if its turn arose?
Two banks have lent $20million each to a country in an Emerging Market. Bank A has total assets of $220 million and a capital to total assets ratio of 7 percent. Bank B has total assets of $350 million and a capital to total assets ratio of 6 per..
Is building a school an "investment"? Is building a hospital? A sports stadium? A housing project? A research lab? What do you think distinguishes investment, in general, from consumption?
Solve for the growth rate of consumption as a function of α and graph for various values of α. What is the effect of increasing α? Comment on your findings.
Assume that a state government currently provides no child care subsidies to working single parents, but it now wants to adopt a plan that will encourage labor force participation among single parents. Suppose child care costs are hourly.
Using Hot Dogs, Graph the market and the individual supply, demand and costs for Hot dogs side by side. Make sure to include the S.R. and L.R profits
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