B. Moldavia, an open economy initially in LR equilibrium, experiences the
following two macroeconomic events:
1. The Moldavian government cuts government spending and thereby
reduces its budget deficit.
2. International financial markets begin to diversify their portfolios
away from Moldavian assets.

As a result of these two events, real interest rates in Moldavia do NOT change.
Using a three-panel open economy set of diagrams, show the effects of these
changes on the LR equilibrium levels of national savings, domestic investment,
and net exports in Moldavia (be sure your graphs reflect the effects on real
interest rates as well). Explain your results. Is the change in net exports driven
more by changes in S or more by changes in I in Moldavia? Why?

i. The decline in the budget deficit ______ public savings in Moldavia at each level
of the real interest rate, shifting the S curve for loanable funds _____.
a. Increases ; out and to the right
b. Increases ; back and to the left
c. Decreases ; out and to the right
d. Decreases ; back and to the left

ii. International rebalancing of portfolios away from Moldavian assets means that
foreigners’ purchases of Moldavian assets will ______, thus _____ NCO in
Moldavia.
a. Rise ; increasing
b. Rise ; decreasing
c. Fall ; increasing
d. Fall ; decreasing

iii. Given (as stated above) that these two events do not change the equilibrium real
interest rate in Moldavia, equilibrium investment _______ , and the equilibrium
level of NCO ________.
a. Rises ; rises
b. Falls ; rises
c. Does not change ; rises
d. Does not change ; falls

iv. These two events combine to _______ the equilibrium level of the real exchange
rate in Moldavia, __________ the relative price of Moldavian goods and services
relative to foreign goods and services, and _________ the equilibrium level of net
exports in Moldavia.
a. Raise ; increase ; lower
b. Raise ; decrease ; raise
c. Reduce ; increase ; lower
d. Reduce ; decrease ; raise

v. This change in NX is entirely driven by the change in ______ because _____ .
a. National savings ; investment decreases.
b. National savings ; investment does not change.
c. Investment ; national savings decreases.
d. Investment ; national savings does not change.

1) indicate which 9 of the following 18 statements are false.

4) Today, you sold 1 share of Litchfield Design stock. The percentage return over the past quarter (from 3 months ago to today) for these shares was 6.29 percent. You purchased the shares 3 months ago at a price of 118.69 dollars per share. You just received 4.57 dollars in dividends. What was the price of the stock when you sold it?

6) Blue Eagle Recycling stock has an expected annual return of 15.81 percent. The stock is currently priced at 62.97 dollars per share and has an expected dividend yield of 7.76 percent. What is the price of the stock expected to be in 1 year?

10) Platinum Water Shipping stock is expected to pay a dividend of 3.92 dollars in 1 year and a dividend of 3.6 dollars in 2 years. The stock is expected to be priced at 84.69 dollars in 1 year and at 90.84 dollars in 2 years. What is the current price of Platinum Water Shipping stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Question 11

Fairfax Paint stock is expected to pay a dividend of 3.62 dollars in 1 year and a dividend of 2.44 dollars in 2 years. The stock is currently priced at 92.29 dollars and is expected to be priced at 99.32 dollars in 1 year. What is the price of Fairfax Paint stock expected to be in 2 years? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Question 12

Orange Valley Technology stock is expected to pay a dividend of 3.8 dollars in 1 year. The stock is currently priced at 124.99 dollars, is expected to be priced at 129.57 dollars in 1 year, and is expected to be priced at 135.13 dollars in 2 years. What is the dividend in 2 years expected to be for Orange Valley Technology stock? The stock’s dividend is paid annually and the next dividend is expected in 1 year.

Leases are frequently used as an alternative to debt. Lessees include individuals, businesses, nonprofit organizations, and governments. Individuals regularly lease homes, automobiles, computers, and even furniture. Land, buildings, and equipment are leased by businesses, nonprofit organizations, and governments. Instead of signing a loan agreement calling for a fixed series of principal and interest payments, the company signs a lease agreement calling for a fixed series of lease payments over all or most of the asset’s life. Accountants recognize the similarity of leasing and borrowing by classifying those leases that are close substitutes for borrowing as financial leases, also called capital leases, and requiring the present values of the lease payments for those leases to appear as assets and long-term liabilities on the balance sheet. If a lease has the same economic consequences as debt, the present value of contractual lease payments should be treated as part of the long-term debt in cost of capital analysis as well. As a practical matter, the present value of lease payments appears on the balance sheet. As with debt, it is necessary to include the current portion of the lease obligation as well as the present value of payments on operating and capital leases that are due more than a year in the future. In the event of default, a lessor can often reclaim the leased asset faster and easier than would be the case for a secured lender. Therefore, lessors are often willing to provide assets through a lease when the company’s credit rating would not be strong enough to induce a creditor to make money available. The creditor compensates for risk by financing only part of the cost of the asset, while leases often provide close to 100 percent financing From an analysts' perspective, the fixed-charge coverage ratio includes lease payments and sinking fund payments with interest obligations to arrive at the ratio of earnings to all fixed cash obligations. Low or falling coverage ratios signal possible cash flow difficulties.

Is this a correct statement? Provide rationale.

Patient: Lisa is a 70-year-old Caucasian post-menopausal (since age 50) female. She is currently sedentary, and has smoked for most of her adult life. Lisa has lost 1.25 inches in height, and has upper-back and hip pain. Her physician just recently diagnosed her with osteoporosis. She has chosen not to use estrogen replacement therapy, but she has overheard her friends talking about some new “bone drugs” that have been prescribed to them. Lisa has been cleared by her physician to begin an exercise program.

1. Why has Lisa lost height?

Subjective (S): “I had a bad fall in my home last month when climbing up my basement steps. I’m worried about falling again, and I am having trouble going up and down the steps in my house. I want to become more active, and accomplish my daily tasks around the home with greater ease. Some of my friends have been jogging around the neighborhood in the evenings, and I want to join them since I know exercise is beneficial to my health. My physician is confident that you can develop an exercise program for me that will help slow my bone loss, and improve my overall quality of life. Also, could you please inform me about which “bone drugs” I should be taking?”

2. Should Lisa go jogging with her friends in the evenings? Please explain your answer.

3. What “bone drugs” might you talk to Lisa about? Name a few of these drugs, and describe their primary effects. Remember your scope of practice: You can educate Lisa about the various “bone drugs” that are available. However, all questions regarding whether or not they are right for her to take should be directed to her physician.

Look Out Below: A Case Study on Bone Tissue Structure and Repair An elderly patient arrived at the emergency room unconscious after an accident in which a heavy overhead shelf struck her arm. Upon auscultation, a large open wound on her arm was evident with what appears to be bone tissue sticking out of the skin. She also has bruises covering her left shoulder, left wrist, and lower back. To determine the extent of her injuries the patient undergoes several x-rays, which reveal the following:

1) fracture of the left humerus at the proximal diaphysis,

2) depressed fracture of the occipital bone,

3) fracture of the 3rd lumbar vertebral body. Answer the Following (short answer) \

1. Define the following terms, used in the case and also in associated questions: a. Comminuted fracture b. Epiphyseal plate c. Bony callous d. Paget’s Disease

2. What is the difference between the Calcification zone and the Ossification zone found.

3. What type of bone tissue makes up the majority of the vertebral body? Describe the structure and function of this type of bone.

4. Describe the layers of compact bone.

5. Most connective tissue, including bone, is highly vascular. Which anatomical structures in the patient’s compact bone house blood vessels?

6. What term is used to describe the addition of new bone tissue? Identify which bone cell is responsible for this process and explain how it occurs.

7. What makes up the organic and inorganic portions of the bone’s extracellular matrix (ECM)? 8. Describe the structure of an osteon.

Discussion:

Further diagnostic tests on the patient revealed a lack of estrogen and calcium. Elaborate on how these factors may have made the injury worse. In normal conditions, what would be the response to falling calcium levels? Post your response and respond to two of your classmates using at least 3-5 sentences to receive full credit (10 points).

Most unions have opposed free trade agreements, such as NAFTA. On the other hand, most employer lobbying groups have supported such agreements. Create an argument for one side or the other.

Question 5: Which of the following contracts has the most price risk? The most reinvestment risk?

7-year bond with a 5% coupon

1-year bond with a 12% coupon

3-year bond with a 5% coupon

15-year zero coupon bond

15-year bond with a 10% coupon

Sort the pH of the following mixtures from LOWEST (most acidic) to HIGHEST (most basic):

(I) 0.001 mol of HCl added to 1 L water

(II) 0.001 mol HCl added to a buffer solution of 0.1 M HCOOH and 0.1 M NaHCOO (pKa=3.75)

(III) 0.001 mol HCl added to a buffer solution of 0.1 M NH4Cl and NH3 (pKa=9.25)

The SAT is the most widely used college admission exam. (Most community colleges do not require students to take this exam.) The mean SAT math score varies by state and by year, so the value of µ depends on the state and the year. But let’s assume that the shape and spread of the distribution of individual SAT math scores in each state is the same each year. More specifically, assume that individual SAT math scores consistently have a normal distribution with a standard deviation of 100. An educational researcher wants to estimate the mean SAT math score (μ) for his state this year. The researcher chooses a random sample of 685 exams in his state. The sample mean for the test is 490.

Find the 90% confidence interval to estimate the mean SAT math score in this state for this year.

(Note: The critical z-value to use, zc, is: 1.645.)

Your answer should be rounded to 3 decimal places.

The SAT is the most widely used college admission exam. (Most community colleges do not require students to take this exam.) The mean SAT math score varies by state and by year, so the value of µ depends on the state and the year. But let’s assume that the shape and spread of the distribution of individual SAT math scores in each state is the same each year. More specifically, assume that individual SAT math scores consistently have a normal distribution with a standard deviation of 100. An educational researcher wants to estimate the mean SAT math score (μ) for his state this year. The researcher chooses a random sample of 684 exams in his state. The sample mean for the test is 481. Find the 90% confidence interval to estimate the mean SAT math score in this state for this year. (Note: The critical z -value to use, z c , is: 1.645.)