# In the economy of Duriland, the unemployment rate is 7%, the real GDP is \$500 million, the real interest rate – Assignment Help

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In the economy of Duriland, the unemployment rate is 7%, the real GDP is \$500 million, the real interest rate is 3%, the reserve ratio is 40%. Suppose the public holds no cash and all banks holds no excess reserves. Suppose the central bank buys bonds worth \$10 million from the public. Which of the following statement is correct?The total loans will increase by \$2.5 million in this economy.The total loans will increase by \$4 million in this economy.The total loans will increase by \$15 million in this economy.The total loans will increase by \$10 million in this economy.The total loans will increase by \$25 million in this economy.

## 12-11) A computer-controlled milling machine will cost Ajax Manufacturing \$65,000 to purchase plus \$4700 to install. (a) If the machine

12-11) A computer-controlled milling machine will cost Ajax Manufacturing \$65,000 to purchase plus \$4700 to install. (a) If the machine would have a salvage value of \$6600 at EOY 20, how much could Ajax charge annually to depreciation of this equipment? Ajax uses straight-line depreciation. (b) What is the book value of the machine at EOY 3? (c) Ajax Manufacturing earns a net profit before tax (also called a taxable income) of \$28,800,000. How much tax would Ajax owe for this year?

## Utility maximization under constraint, substitution and income effect, CV and EV Josh gets utility (satisfaction) from two goods, A and

Utility maximization under constraint, substitution and income effect, CV and EV Josh gets utility (satisfaction) from two goods, A and B, according to the utility function U(A, B) = 5A^1/4B^3/4 . While Josh would like to consume as much as possible he is limited by his income. a. Maximize Josh’s utility subject to the budget constraint using the Lagrangean method. b. Suppose PA increase. Show graphically the income, substitution effect and total effect and explain. c. Suppose PA increase. Show the graph for CV and EV and explain

## Using a simple random sample of 90 firms, you run an OLS regression of total CEO compensation in millions of Using a simple random sample of 90 firms, you run an OLS regression of total CEO compensation in millions of dollars ( salary ) on annual sales in millions of dollars ( sales ) and return on equity in percent ( roe ):ln ⁡ ( salary ) ^ = 5.5 ( 0.4 ) 0.81 ( 0.052 ) ln ⁡ ( sales ) 0.04 ( 0.006 ) roeYou wish to test the hypothesis that a 1% increase in annual sales is associated with a 1% increase in CEO compensation. What is the relevant test statistic?Standard errors are in parentheses below each estimated coefficient – so, for example, the OLS estimate of the intercept has a standard error of 0.4. Assume MLR.1-MLR.6 are satisfied and that standard error of the regression is unknown.If necessary, round your answer to four decimal places.

## (a) The Information in the two tables below are for a hypothetical economy. The first table shows the case for

Economics Assignment Writing Service(a) The Information in the two tables below are for a hypothetical economy. The first table shows the case for when the economy is private and closed. The second table shows when we open the same economy to international trade. Use the information in the two tables to answer questions (i) to (v) that follow. (Please show your calculations and/or state the formula used in each case.)(i) Find the equilibrium level of GDP and size of the multiplier. (ii) Suppose we open the economy to international trade by including the exports and imports data in columns (4) and (5) as below. Complete the table below by filing in columns (6) and (7) and determine the equilibrium GDP for the open economy. (Show your calculations)(iii) From your answers in (i) and (ii) above, what is the change in equilibrium GDP for the economy when it is opened to international trade? (iv) Given the original \$70 billion level of exports in column (4), what would be the equilibrium GDP for the open economy if imports (column (5) were \$10 billion higher at each level of GDP? (v) What is the multiplier for the open economy?

## Is it possible that the violent members of the drug cartels can behave like cartels in legitimate markets? Support a

Is it possible that the violent members of the drug cartels can behave like cartels in legitimate markets? Support a perspective presented by your colleague.Explain why and how you have a different perspective.Share an insight based upon your colleague’s posting.Validate an idea with your own experience.Expand upon your colleague’s posting.Ask for evidence that supports the posting.

## Problem 4: A Lockdown in the SOE Model [15 marks] Consider a Small Open Economy model. Answer the following questions

Problem 4: A Lockdown in the SOE Model [15 marks] Consider a Small Open Economy model. Answer the following questions by assuming that the purchasing power parity (PPP) holds, and that the country adopts a flexible exchange rate. 1. Suppose that the government implements a lockdown. Which are the equilibrium effects of this shock on the real wage, employment, the real interest rate, output, and domestic prices? Use the equilibrium diagrams for the current labour market, the current goods market, and the money market in the Small Open Economy Model to answer this question. 2. How will the lockdown affect the current account balance? Explain. 3. How would your answers to parts 1 and 2 change if the country adopted a fixed exchange rate? Explain. Assignment Pro (28431)
New York University Is this question part of your assignment?

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