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Explain the difference among saving and investment as explained by macroeconomists.
Which of the following situations represent investment or saving?
Explain:
a) You use your Rs 20000 pay check to buy stocks in Reliance
b) You borrow Rs. 100000 from a bank to buy a car to use in your company
c) Your room mate earns Rs.1000 and deposits it in her bank account
Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year.
If interest rates increase, which would you rather be holding, long term or short term bond? Why? Which type of bond has the greater interest rate risk?
PRODUCTION POSSIBILITY CURVE As we have seen, the essence of economic analysis is the problem of scarcity and choice. We know that limited productive resources compel individua
It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we
Could you please tell me an example and describe example of macroeconomics?
What are the international economic crisis A current account surplus can only take place in one nation if there is a current account shortage in another country. So it makes no
Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002
Let the real interest rate, i r , equal 5 percent and the rate of depreciation, d, equal 10 percent. In this case, if the price of a piece of capital is P K = $10,000, what is th
Henry Ford's Model T was originally designed and built to be run on ethanol. Today, ethanol (190-proof alcohol) can be produced with domestic stills for about $0.75 per gallon. Whe
given the consumer maximizing problem subjest to consumption, the firm''s maximizing problem subject to revenue as a function of labour demand, and the government''s budget as G=T.
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