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Suppose the Fed purchases $100 million worthof government securities in the open market. a. If the securities are purchased from thepublic, what is the initial impact on M1 b. How will M1 change
Assume that there are no excess reserves inthe banking system and the reserve ratio is 40 percent. John Smith finds $10,000 incash under his mattress, stashed there by his great aunt who didn't beli
Your company is considering the purchase of new earth movingequipment. The total purchase is $240,000 and we pay with $100,000 cash and borrow therest. (12% per year nominal, compounded monthly for
Global Investment Group operatesin a perfectly competitive industry with the following Cost andRevenue data: Average Total Cost = $2.50; Quantity sold =9000 Units; Price Per Unit = $3.50; Marginal Rev
You open a savings account to save for a new house. Everymonth you put $100 into a savings account which pays 5% interest compounded monthly.
Calculate the present worth (year 0) of a lease that requires apayment of $20,000 now and amounts increasing by 5% per year through year 10. Use an interestrate of 14% per year.
Determine the capitalized cost of an expenditure of $200,000 attime 0, $25,000 in year 2 through 5, and $40,000 per year from year 6 on. Use an interestrate of 12% per year.
An engineer deposits $300 per month into a savings account thatpays interest at a rate of 6% per year, compounded semiannually. How much will be in theaccount at the end of 15 years
Video cards based on Nvidia's GeForce2 processor typicallycost $250. Nvidia realeased a light version of the chip that costs $150. If a certain game makerwas purchasing 3000 cards per quarter
The standard best practice technology available to any firm in anindustry uses a factory with an Average Cost Curve given by: AC= a-bq+cq^2 when output(q)= 0 then AC=10, minimum AC=5 , this is achieve
2 former students worked in an investment bank at a salary of $60,000 each for 2 years after they graduated. together they saved $50,000. After 2 years, they decided to quit and start a business.
use the following cost index data for each piece of equipmentto update the price that would be paid today original equipment cost indexwhen originallpurchased cost index today va
Suppose that for a given year, governmentspending at full employment is estimated to be $850 billion. Tax revenues at fullemployment are estimated to be $790 billion. The actual deficit is $100 bill
determine the new equilibrium price and quanity reproduce the graph tha u drew for question 4 and label oringinaldemand and supply schedules and labal oringinal equilibium priceand quanity.
50 years ago a set of gold plated dinnerware cost $55, lastyear you inherited it. unfortunately if was destroyed in ahouse fire. the Aurum Flatware Cost Index (AFCI) was112 fifty years ago, today it
Projected government revenues from blood sucking income andconsumption taxes, not to mention pick-your-pocket duties andexcise tases is $243 billion for 2008-2009 fiscal year.
Show that the expression of the change in a product's currentequilibrium quantitty due to a unit change in the product'sexpected future price is: dQ = (SpDpe - DpSpe)dP / (Sp-Dp) where Sp and Dp are
The tangency condition implies the Euler equation MU(Ct) = (1+r1 ) MU (Ct+1). Now assume the marginal utility functions are MU (Ct) =βtct-1/α (1) where α is the intertemporal
U(*) 5lnQ1 + 4lnQ2 +10 ln(1+Q3)The prices of the three goods are P1= 10, P2= 20, P3= 20000, and individuals total income is$60000. Automobiles must be bought in discrete units, that isQ3 must be equa
Suppose that on a Saturday night there are 20 people who'd eachlike pizza. Each person's willingness to pay for pizza is given bythe equation W2Pi=10-Qi, where W2Pi is the maximum amount person iis
suppose that consumers suddenlywanted to increase their spending, and decrease their savings.Desrive what will happen to output, consumption, governmentspending, taxes, investment and the real inter
Why the government wants to keep the price athigher level i.e. to $5.50 when there is decline in export demand. Will it effect on the quantity demanded or quantity supplied equation and curve and how
At the end of the first year's football season, the alumni demandedthat the coach be fired. The alumni agreed to buy hisremaining years on the contract by paying him the equivalentpresent sum, compu
The council members of a small town have decided that the earthlevee that protects the town from a nearby river should be rebuiltand strengthened. The town engineer estimates that the costof the wor
rate lifesaver for steps A man wants to help provide a college education for his young daughter. He can afford to invest $600/yr for the next 4 years, beginning on the girl's 4th birthday.