Is lm model

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Your friend has started a new business that owns a building. She would like some insights on how she should evaluate new opportunities.   She has $500,000 in funds to use. Looking at her business, you discover the following opportunities: Insulate her building at a cost of $120,0...
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Your are closing your plant. You have a machine with a book value 0f $6,227.14 which you sell for $9,385.03. The incremental effect on current year taxable income is ? Assume you are still making a large profit in the year of sale. (Give answer in dollars and cents without $ sign or commas...
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You plan to buy a $152,015 hourse. You have $24,200 to use as the down payment. The bank offers to loan you the remainder at 18% nominal interest compounded monthly. The term of the loan is 20 years. What is your equal monthly loan payment? ...
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You can analyze changes in foreign-exchange rates by using supply and demand diagrams. Construct an example for the $/£ exchange rate wherein the dollar appreciates relative to the pound. Carefully label your diagram and have the initial exchange rate equal to 1.60. What might cause ...
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You are the manager of a monopoly that faces a demand curve described by P = 230 - 20Q. Your costs are C = 5 + 30Q, and MC = 30. The profit-maximizing price is Select one: a. 150. b. 90. c. 130. d. 110. ...
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You are an industry analyst that specializes in an industry where the marketinverse demand is P  100  5Q. The external marginal cost of producingthe product is MC External  10Q, and the internal cost is MC Internal  20Q.a. What is the socially efficient level of output?b. Given these c...
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You are an efficiency expert hired by a manufacturing firm that uses K and E as inputs. The production function for a competitive firm is Q = K^1/2 E^1/2. The firm sells its output at a price of $32, and can hire labor at a wage of $12.44 per hour. In the short run, capital is fixed at 49 ...
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Y C I G NX 7,0006,1004001,0005008,0006,9004001,0005009,0007,7004001,00050010,0008,5004001,00050011,0009,3004001,00050012,00010,1004001,00050013,00010,9004001,000500a. What is the marginal propensity to consume implicit in this data?b. What is the numerical value of the multiplier for this ...
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1.If the marginal propensity to consume were 0.5, how much would government spending have to rise in order to raise output by $1000 billion? 2. Suppose that government policymakers decide that they will change taxes to raise aggregate output by  $400 billion, and mpc = 0.5. By how mu...
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Why is Google Fiber, Google docs, and Google Android would most likely have network effects within 5 years? ...

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