ECON 545(DEVRY) help A Clearer path to student success/uophelp.com ECON 545(DEVRY) help A Clearer path to student suc | Page 57

businesses can make each year by installing solar panels on their roofs.
Cindy has also heard of government incentives for installing solar panels.
Being concerned about the environment and wishing to reduce pollution,
Cindy thinks installing solar panels also serves a good social purpose.
But she does not want to risk her life savings on a venture that might not
succeed or become profitable enough. After hearing from you about
taking this course in business economics, she decides to ask you for
advice.
At first you are hesitant to give investment advice. Then you read the
piece “Postal Service Considering Cutting 120,000 Jobs” on page 668 of
the textbook. You realize there are more pieces to the decision than
Cindy is considering. You decide to research the economy in terms of
GDP growth rate, interest rates, level of unemployment, the business
cycle, fiscal policy, monetary policy, international trade, and
demographics. You want to provide Cindy with the most informed
advice possible.
Situation C
Cousin Edgar is always thinking of the next business idea. This time, he
plans to invest in buying four gas stations. He reckons American
consumers have come to accept the high gasoline prices, and estimates
world prices for gasoline to increase even further with high demand
from India and China. Besides, Cousin Edgar thinks he will make a good
profit on the sale of convenience items at each station. But before buying
the gas stations, he decides to ask for your advice because you are taking
this course in business economics.
You happened to read the piece “Bank Lending Signals a Strengthening
Economy” on page 856 of the textbook. Cousin Edgar needs financing
for his new business, but you realize there are more macroeconomic
factors he needs to consider in timing his decision. You decide to
research the economy in terms of GDP growth rate, interest rates, level