What types of firms would tend to have high costs of


1. Betty DeRose, Inc. wishes to accumulate $192,732 by making annual deposits of $20,000 at the beginning of each year, with each deposit earning 8% interest compounded annually. How many deposits must Betty make?

2. What types of firms would tend to have high costs of capital? What types would have low costs of capital? Why?

3. How would you increase inflation from under 2% in our United States economy to between 2 and 3 percent using monetary policy tools?

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