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Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L), then?
If the value of the dollar declined from 90 to 80 yen during the year, what rate of return does the Japanese firm earn on its investment?
Why the short-run demand for gasoline is less elastic than the long-run demand, when the price of gasoline rises, people immediately cut back on unnecessary trips.
In a certain economy, when income is $200, consumer spending is $145. The value of the multiplier for this economy is 6.25. It follows that, when income is $230, consumer spending is?
Show how the transaction would have been recorded in the U.S. balance-of-payments accounts. What was the net effect on the U.S. balance of payments with Germany?
If these figures are in real dollars, and the real discount rate is 8 percent, which project would the county select? Show you calculations.
Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative. Which alternative expansion scheme should Cola King follow?
Desired consumption is = 100 + 0.8Y - 500r - 0.5G, and desired investment is = 100. Find the equilibrium values of the real interest rate, consumption, investment, and the price level.
If MMM's capital structure consists of 25% debt and 75% equity, stated in total funds, what is the WACC break point that is associated with retained earnings?
Macon farm's 6% coupon rate (semi-annual payment) $1,000 par value 12 year bonds currently sell at a price of $814.20. If its marginal tax rate is 40%, what is Macon's after-tax cost of debt?
Why do proponents of active policy recommend government intervention to close an expansionary gap? Briefly discuss.
Discuss the role of the FOMC and the three major policies it implements to help regulate banks. Briefly describe the equation used to measure bank reserves and the definition of the federal funds
Describe the major differences between depository and nondepository intermediaries, which institutions have recently handled the majority of financial transactions.
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of an expansionary Fiscal Policy and Monetary Policy on the overall level
Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply.
Which best describes the tension between central control and subsidiary initiative in a large firm? The central management must realize social capital in order to take advantages of the complex subsid
If lobbying occurs, the pollution-abatement device will be required. Draw the game tree describing this situation. Under what conditions will the monopoly lobby?
Demand and market conditions and the pricing behavior of Kodak in the 1990's. Do you think the industry environment is significantly different today? Explain.
What is the social optimum quantity and price? Calculate the total surplus in the market equilibrium, at the social optimum and with the tax.
Capital outflow with respect to the real interest rate is very high, will this increase in private saving have a large or small effect on Malaysian domestic investment?
Suppose that at the equilibrium price and quantity, the marginal revenue is -$15 and the price elasticity of demand for a linear demand function is -0.75. What is the equilibrium price?
Model this procedure under the "closed rule" as an extensive game and find the subgame perfect equilibrium as a function of the status quo outcome y0.
Show that any efficient allocation (that is, x+y = 1) is a Nash equilibrium in pure strategies. Can you find a Nash equilibrium in pure strategies that is not efficient?
Would such actions by U.S. corporations actually reduce the national debt as it is now measured? How would your answer change if the U.S. government adopted capital budgeting?
Write an expression for the firm's marginal revenue product. Clarke currently pays $150 per day (including fringe benefits) for each of its skilled workers. How many workers should the firm employ?