Exercise 8.8 from the textbook. Assume the Bull's Eye branch is twice as large as the locally owned store and everything else stays the same. What is the attraction Aij for the Bull's Eye's store in area 2?

Site(j)1234

Proposed .33 .33 .78 .82

Existring .67 .67 .22 .18

Question 2 options

a)

0.125

b)

none of the answers

c)

0.8

d)

0.1

e)

0.15

Write two goals for yourself that will aid you in pursuing your post-secondary education or training. with this

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 .     c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.