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How does the NAIBER work and why is it considered an alternative to the NAIRU?
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- Martin Shrood purchased a vacant lot outside of London for £13,500, because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by puttingin a fast-food outlet on the site. As it turned out, the rumor was false. A sanitary landfill was located on the other side of the road, and Martin’s land was worthless. (£ denotes the British monetary unit, pounds sterling.)*Required: With respect to the economic characteristics of costs, what type of cost is the £13,500 that Martin paid for the vacant lot?Do you believe yesterday's Interest Rate Increase of 0.50% by the Bank of Canada was necessary? If so, why?Will the additional $400,000 which was deposited in the Second National Bank affect the new loan?