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Problem: a) Using a financial or economics theory, determine a simultaneous structural model and a recursive model, explaining each variable used in the models. b) Using
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Assume that Jane spends her entire income of $100 on two goods, x and y. Moreover, these goods are perfect complements for her. Let the price of good x go up while the price
Over the next two years, Susan's income will be $33,000 in the first year and $33,000 in the second year. She can both borrow and lend money at the 10% of annual interest. (a) W
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