Demand for money and rate of interest
Problem: Formulate James Tobin's model of risk and portfolio choice, and with the use of a diagram, show how his model explains the inverse relationship between the demand for money and the rate of interest.
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Formulate James Tobin's model of risk and portfolio choice, and with the use of a diagram, show how his model explains the inverse relationship between the demand for money and the rate of interest.
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An analysis of similar products on the market suggests a price of $125.00 per unit. The company requires a profit of 0.19 of selling price. How much is the target cost per unit?
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On the other hand, the company in China is willing to pay only $135 per unit. What will be the effect on profit of accepting the order?
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