Determining the amount of the cash flow to creditors
At the beginning of the year, long-term debt of a firm is $290 and total debt is $330. At the end of the year, long-term debt is $240 and total debt is $340. The interest paid is $26. What is the amount of the cash flow to creditors?
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Draw the aggregate demand-aggregate supply model of the macroeconomy for the short run, assuming that the economy is in the expansionary phase of the business cycle.
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