Many colleges were involved in grade inflation; but the schools with the most evidence of this action are the Ivy League schools. Two of the schools in the Ivy League program that are known for this practice are Harvard and Princeton in a study conducted by the American Academy of Arts and Sciences “in 1966‚ twenty two percent of Harvard undergraduate students earned A’s. By 1996‚ that figure rose to forty-six percent. That same year eighty-two percent of Harvard seniors graduated with honors.”
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1. Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. If the central bank does not respond to this event‚ what will happen to the price level? Use a diagram to assist in answering this question. [5 marks] 2. Use the loanable funds model to explain what happens to interest rates and investment if a government moves from a balanced budget position to a budget surplus. [10 marks] 3. Suppose that the T-account for The Open Campus
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Q1) Using data from the OECD (see Blackboard)‚ compare the most recent PPP exchange rates for the pound‚ yen and euro with their nominal exchanges rates. What differences do you observe? What accounts for those differences? PPP exchange rates are the converted currency rates that equalize the purchasing power of different currencies for a given basket of goods by eliminating the differences in price levels between countries. The following is the comparison of the PPP exchange rates for pound‚ yen
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Suppose you discover a treasure chest of RM10 billion in cash a. Is this a real or financial asset? Answer: Yes. 10 billion cash is the financial asset. This is because financial assets only obtain its monetary value from a contractual agreement of what it represents. In contrast‚ real asset itself has the physical value. b. Is society any richer for the discovery? Answer: No. This is because the cash does not contribute to the productive capacity of the economy. c. Are you wealthier
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Changing the Rate of Reaction PART 1: PARTICLE SIZE Question: How does changing the particle size of marble (CaCO3) affect the rate of reaction when it is added to hydrochloric acid (HCl)? Hypothesis: If I change the particle size of marble to test how to change the rate of a chemical reaction‚ than the chemical reaction with the smallest marble particles will produce CO2 the quickest because the larger the surface area‚ the more place the hydrochloric acid will have to collide with the marble
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Causes and Remedies of Inflation in India Inflation by definition involves rise in prices of goods and services. Inflation is usually caused by demand outstripping supply of goods and services. It can also be caused by suppliers/traders of certain goods and services (or speculators in goods) hiking their prices in order to effectively increase their profits/incomes. Such attempts to increase their incomes/profits may also be‚ in many cases‚ through hoarding or speculation
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Question 2: (a) Which of the following are final goods and services and which are intermediate goods and services? Please explain why in your answer. (4 marks – 1 mark each) (i) A new bulldozer to be used by a construction company; When a construction company buys and uses a new bulldozer becomes intermediate goods when it is used in the production of their products services in subsequent periods. (ii) A windscreen purchased by a motor vehicle spare parts supplier; Intermediate goods
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Inflation & Money Supply Econ 302 Fall Semester Salman Sharoon John 09-15103 Department Of Economics FORMAN CHRISTIAN COLLEGE (A Chartered University) Acknowledgements: I would like to thank Mr. Zahid Iqbal‚ Luqman Saeed & Keizer Xavier for the help and all the time needed in knowing and studying the variables and helping in this research paper. Introduction: Inflation is a burning issue in Pakistan. Pakistan has double digit inflation
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LETTER OF TRANSMITTAL Date: August 20‚ 2004 To: Professor Kahlil-ur-Rehaman From: SUMS Group Subject: Transmittal of Project We are given pleasure to transmit this report‚ “Relationship between Inflation & Employment” under the unprejudiced conclusions of Financial Management Course‚ during summer (3rd) semester 2004 of MBIT program‚ IBIT department‚ University of the Punjab. We have arranged our superlative efforts in originating this undertaking. We enormously enjoyed
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two mutually exclusive projects. The cash flows of the projects are as follows: Year | Project A | Project B | 0 | -$2‚000‚000 | -$2‚000‚000 | 1 | 500‚000 | | 2 | 500‚000 | | 3 | 500‚000 | | 4 | 500‚000 | | 5 | 500‚000 | | 6 | 500‚000 | | 7 | 500‚000 | 5‚650‚000 | a. Compute the NPV and IRR for the above two projects‚ assuming a 13% required rate of return. b. Discuss the ranking conflict. c. What decision should be made regarding these two projects? Answer: a
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