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Use the Concept of a Positive Externality to Explain Why

question 133

Essay

Use the concept of a positive externality to explain why it makes sense for government and private industry to subsidize young adults' college educations.


Definitions:

Interest Rate

The amount of interest levied on a loan, represented typically as an annual percentage of the loan's remaining balance to the borrower.

Miller-Orr Model

Describes a cash management strategy aiming to maintain an optimal cash balance through upper and lower cash limit controls.

Opportunity Rate

The return rate a company foregoes by investing in a certain project, often compared to the risk-free rate or another investment option.

Monthly Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business in a given month.

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