Consider a market for loanable funds for an open economy with floating exchange rate. foreign investors in a country become worried about the stability of the government due to its rising debt level. how would it affect equilibrium in the market for loanable funds and exchange rate at the foreign exchange market?

we would expect

a. demand for loanable funds to shift to the right and interest rate to increase
b. demand for loanable funds to shift to the left and interest rate to increase
c. demand for loanable funds to shift to the right and interest rate to decrease
d. demand for loanable funds to shift to the left and interest rate to decrease
e. supply for loanable funds to shift to the right and interest rate to increase
f. supply for loanable funds to shift to the left and interest rate to increase
g. supply for loanable funds to shift to the right and interest rate to decrease
h. supply for loanable funds to shift to the left and interest rate to decrease

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?

Peter, the marketing manager of a company that manufactures church furniture, has been given the job of increasing corporate profits by five percent during the upcoming year. peter decided to give his assistant the full responsibility and authority for developing a mailing campaign to target churches in an entire state. in other words, peter has