Don has an idea for a new business. In order to develop his idea, he needs to invest $600 today. Don's idea will pay off $690 next year for certain. Now suppose that Don has $600 in his bank account. c. Suppose that the interest rate for borrowing and for lending is 12%. Should Don withdraw his savings to fund his idea? d. Suppose that the interest rate for borrowing and for lending is 22%. Should Don withdraw his savings to fund his idea? e. Does the method of financing (whether through savings or debt) appear to affect the relationship between the interest rate and the decision to undertake investment? Explain.

Q: Which of the following statements is correct? ___ Marginal utility is the sum of total utility. ____…

A: Total utility is the total satisfaction derived from consuming a good.

Q: Madeline lives in Melbourne, where she buys kiwis at $10 per box and bananas at $9 per a bunch. With…

A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…

Q: Justify teachings of property law to students of economics

A: Private property refers to the ownership of resources by private individuals without any government…

Q: Assume the following model of a closed economy:   Y = C + I + G C = 120 + .5(Y – T) I = 100 – 10r…

A: For IS equation Y = C + I + G Y = 120 + .5(Y – 50) + 100 – 10r +75 Y = 295 + 0.5Y - 25 - 10r Y -…

Q: Suppose that Desert Farms want to expand its product line with camel milk and other dairy products,…

A: Aggregate Cost function : C(Q1 , Q2 ) = 75 + (2Q1 - Q2)2 Economies of scope refers to the phenomena…

Q: Now,suppose N=3 with a market clearing interest rate. The first two agents are the same as earlier.…

A: At the point when the government is running at shortage budget than the public investment funds…

Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market…

A: Q=400-2P Dominant firm's MC = 20 MC = 20+5q

Q: #4 Use the IS-MP model to show what happens when the Federal Reserve raises the federal funds…

A: Disclaimer: Since you have posted multiple questions, I am providing you with the answer to the…

Q: 4. An industry has 50 perfectly competitive firms, which have the cost function c(y) = 100 + 0.25y2.…

A:

Q: GDP Counting Activity Consumption Expenditures (A) Gross Private Domestic Investment (B) Government…

A: GDP is defined as the total production of all goods and services within territory of the country…

Q: At time t=0, Rs= 10%, Re= 10%, and Es/e=E®s/E=1 Assume the Reserve Bank of Australia (RBA)…

A: PLEASE FIND THE ANSWER BELOW.

Q: How would the long-run equilibrium output change if new natural resource (energy) was discovered?…

A: Natural resources are the raw materials that are used by the business organizations in order to…

Q: each situation, soive for tne tackelberg equiln 7a) Suppose Sarah's constant MC is $5 but Joe's is…

A:

Q: Questions 8-12 are related to the following: Consider the following hypothesis test. Họ: µ2 120 H1:…

A: Given  Hypothesis test: H0:μ≥120H1:μ<120

Q: a. Complete the marginal cost column in the table. Tie-Dyed T-Shirt Production Costs Output…

A: Given,

Q: Smith and Wesson are the only two residents in a small neighbourhood. They are considering hiring a…

A: Monthly value of security guard = $300 to Smith And to Wesson it's $100

Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…

A: The Phillips curve depicts the inverse relationship between the inflation rate and the unemployment…

Q: Consider the market for ice cream cones. Suppose that supply in this market is given by PS = Q$ and…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Charlie has the utility function U(xA, xB) = xAxB. His indifference curve passing through 35 apples…

A: Given Utility function:  U(xA,xB)=xAxB           .... (1) His indifference curve passes though (35…

Q: Refer to Pessimism. How is the new long-run equilibrium different from the original one? O 1) both…

A: Due to pessimism, consumers will cut down their purchases of major items. This will lead to a fall…

Q: A food truck gyro vendor has weekly fixed costs of ​$550​, and variable costs of $4.55 for each gyro…

A: Cost is the sum of fixed cost and variable cost

Q: Analyze hyperinflation and stagflation.

A: Hyperinflation is a time of quick rising expansion; stagflation is a time of spiking expansion in…

Q: An individuals utility function is given by U = 340x1 + 960x2 + 2x1x2 – 2x – x;/2, - - when the…

A:

Q: Which of the following scenarios is an example of an administrative lag? a)Policy makers obtain…

A: When government takes action against the instability of the economy then the policy measure is…

Q: Chapter 14, Problem 5, p. 530. (not answered) In the New Keynesian model, how should the central…

A: Note:- Since we can only answer one question at time, we'll answer the first one. Please repost the…

Q: Suppose that we allow for the fact that cash can be stolen but assume that a stolen credit card…

A: Plastic money can refer to the use of plastic cards such as debit/credit cards in the form of…

Q: A monopolist’s demand function is given by D(p) = 90 − 2p. This monopolist is facing a cost…

A: D(p) or y = 90 − 2p p = 45 - 0.5y C(y) = (1/2)y2 + 600 TR = p*y TR = 45y - 0.5y2

Q: Which statement is true about inflation? A. As inflation rises, unemployment usually stays the same.…

A: The situation that depicts a general rise in the level of prices of goods and services in the…

Q: Globo-Chem Co. is expected to generate a free cash flow (FCF) of S8,385.00 million this year (FCF, =…

A: The weighted average cost of capital is the rate that a company is expected to pay on average to all…

Q: Activity 1. Describe briefly the effect of the following in purchasing power Inflation Currency…

A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The table shows sales information for the firms in three different markets. Use the…

A: Herfindahl- Hirschman index is used to measure the concentration level of the market. Higher the…

Q: When the Federal Reserve increases their holdings of U.S. Treasury securities they buy these…

A: Federal reserve is the central bank of United States, which is responsible for flow of money into…

Q: Consider the following fixed proportions technologies: Technology A uses 3 units of labour and 6…

A: Technology A = 3 Labour and 6 capital  = 10 unit of output Technology B = 8 Labour and 4 capital  =…

Q: The benefit that John gets from eating an additional grape is called the the grape. 中 A. demand for…

A: Total utility refers to total satisfaction derived from consuming a good. Demand curve shows an…

Q: The Matrixlandia Government wants to reduce the total amount of sulfur dioxide (SO,) emitted by the…

A: Environmental economics is a branch of economics concerned with the financial consequences of…

Q: In 1750, a large number of honey beekeepers in Kirkcaldy were selling honey in identical jars. By…

A: The economics as a study is based upon the basic idea that there is resource scarcity present with…

Q: Compare the pros and cons of two economic systems Communist and Socialism?

A: An economic system, is a method of producing, allocating resources, and distributing commodities and…

Q: Use the orange points (square symbol) to plot the initial short-run industry supply curve when there…

A: A competitive market is one in which many producers compete with one another in order to provide the…

Q: Alice and Bob are playing a repeated game in which a certain stage game is played twice in…

A: It is given that: Alice has 4 pure strategies and Bob has 3 pure strategies in the stage game

Q: True or False? Explain in 2-3 sentences. If both players use grim trigger strategies, they could…

A: If both players use grim trigger strategies, they could (depending on the value of 5) sustain…

Q: Which of the following statements is correct? Multiple Choice ___ Marginal cost is the change in…

A: Marginal cost is defined as the extra coat a firm incurs by employing an extra unit of input.

Q: (0.2) and that the rate of change of price to price is equal to (0.173) *. The elasticity of demand…

A: Here, given information is: The rate of change in quantity demanded: 0.2 The rate of change in…

Q: The graph below shows the daily demand for entry into the downtown core of a major city by commuter…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: Price     Quantity                  Price     Quantity Car           $100       400…

A: P2015 Q2015 P2017 Q2017 P2018 Q2018 Car 100 400 130 420 150 450 Rice 25 2000 30 2005 32 2100…

Q: For the demand function Q = 700 – 7P + 3A +0.008Y2 where P is the price of the good, A is the…

A: Positive cross price elaticity implies that goods are substitutes and positive income elaticity…

Q: Which of the following countries would be more likely to experience strong economic growth, other…

A: The answer is - Option 3. Country ABC has an extensive set of business laws and property lights laws…

Q: (d) Now if Aidan sells q2 JRTs, what is the total number of JRTs that will be sold? (e) What will be…

A: In the given scenario, adan is a leader one and the celina is a follower.

Q: • The demand curve faced by a monopoly firm is given by P 500 - 20 • The marginal cost of production…

A: In a monopoly, firm will maximise profit at a point where marginal revenue is equal to marginal cost…

Q: 2. Assume MPC = 0.9. Government increased its spending by 100. 2.a. How much would this increase…

A: Goods market is in equilibrium when Aggregate demand and aggregate supply are equal to eachother.

Q: Inflation Unemployment If the Phillip curve shows that unemployment is low and inflation is high in…

A: