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Question: Consider the instrumental variable regression model
Microeconomics, Economics
Question: A newspaper headline reads: "State Officials Take on Pricing Regulations to Try to Provide Better, Dependable Income to Dairy Farmers." Is providing dependable income to dairy farmers a good policy goal for gov ...
Question: Use the following Taylor rule to calculate what would happen to the real interest rate if inflation increased by 7 percentage points. Target federal funds rate = 2 + Current inflation + 1/2 (Inflation gap) + 1/ ...
Question: In the early stages of recovery, the S&P 500 and other broad-based stock market indexes generally rose at least 25%. Yet in the months of the first three quarters of 2002, these indexes dropped over 30%. Why di ...
Question: Suppose the full-employment level of real GDP is increasing at a rate of 3% per period and the money supply is growing at a 4% rate. What will happen to the long-run inflation rate, assuming constant velocity? ...
Question: In his 1964 presidential campaign, Barry Goldwater argued that a reduction in both government spending and taxes would boost economic growth. His views were disparaged by most economists and he was overwhelming ...
Question: You can buy a crane for $100,000 that will bring an annual income of $20,000 in year-0 dollars. The service life of the equipment is 10 years and it will be depreciated using straight line method with a salvage ...
Question: Suppose the government imposes a payroll tax of $1 per hour of work and collects the tax from employers. Use a graph for the market for labor to show the effect of the payroll tax, assuming the special case of ...
Question: A small-volume foreign auto maker limits the number of its franchised dealers in the United States and gives them exclusive territories. There are also non-dealers who have no official connection with the manuf ...
Question: Hedonic Modeling Assume we have two identical houses. Each house is a 3 bedroom, 3 bath, 2000 square feetwhite house on a 1 acre lot and both were built in 1996. The single difference is that house B islocated ...
Question: A share of Sox- a maker of disposable socks - is expected to pay a dividend of $1.25 next year. The dividend is expected to grow 5% each year thereafter indefinitely. The appropriate discount rate for this inve ...
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Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate
Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p
Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As
Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int
Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As
