Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help answer all of these question. a. q loanable fund, if i= 9%/yr = interest rate diagram # 1 b. q' loanable funds ,

please help answer all of these question.

image text in transcribed
a. q" loanable fund, if i= 9%/yr = interest rate diagram # 1 b. q' loanable funds , if i= 9%%/yr = L.Determine the equilibrium values using daigram # 1 a. real interest rates (i real)= b. q loanable funds 10%/yr C. q loanable funds d. money interest rates if the inflation rate is 2%/yr (i money) = . money interest rates if 5%/yr the deflation rate is -2%/yr (i money) = 2. Determine the following if the interest rate = 5%/yr a. Present Value of $1m a year later = loanable funds b. Present Value of $1m 2 years later = $50 billion/yr $100 billion/yr c. Present Value of $1m for two successive years = quantity of laoanable funds d. Present Value of $1m for " n " successive years, if n is large = 3. Using diagram #2, where A. MTrancher is the expected marginal profits to the rancher, when the rancher sells an additional head of cattle, B. MDfarmer is the expected damages to the corn farmer , when the rancher sells and addition head of cattle Determine the following: a. Determine the following, if the damages done to the farmer's crop by the ranchers cattle is not recognized (1) (1)equilibrium quantity of cattle raised = (2). Profit to the rancher=MP rancher MTrancher diagram # 2 (3). damages to the farmer's crop = MD farmer (4) income of farmer $1000/head b.Derermine the following, if the rancher is liable for the damages done to the farmers crop by the ranchers cattle MD. farmer (1) equilibrium quantity of cattle raised = (2). profit to rancher = (3) damages to the farmer's crop = 50,000 head qcattle in heads/yr MTrancher (4) income of farmer = c. Determine the following, if the rancher is not liable for the damages done to the farmers crop by the ranchers cattle (1) equilibrium quantity of cattle raised = (2). profit to the rancher = (3). damages to the farmer = (4) income of farmer =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Investments, Valuation and Management

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

8th edition

1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697

Students also viewed these Economics questions