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a) After bad experiences with a flexible exchange rate, the small open economy of Rivendell decides to fix it exchange rate. Suppose the economy of Rivendell has reached the long run equilibrium (i.e. full employment).Use the Mundell-Fleming model to explain what would happen to aggregate income, the real exchange rate, the nominal exchange rate, the real interest rate in this small open economy with a fixed exchange rate if the government implements a tariff on imported goods.
b) Is trade policy more effective under a flexible exchange rate than under a fixed exchange rate? Explaining your reasoning.
Budget line showing the various combinations of scores on the two exams that she can achieve with a total of 400 minutes of studying.
Export and import practices are at the heart of a country’s trade balance with the rest of the world? Why do some countries subsidize their exports when WTO regulations do not allow that? Are global companies such as Intel, Cisco, Microsoft, oracle, ..
The terms of trade between two countries refer to
What if the monopolist charged P= $5.50 for the first 3 units of the commodity and P= $4 for the next 3 units What type of price discriminiation is this?
Find out the real rate of interest earned by Albert in each of the three years and his total real return over the three-year period. Suppose that interest earnings are reinvested each year and themselves earn interest.
What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics? Discuss the impact of rational self-interest on each of the following decisions. Suppose you go to a restaurant and buy an e..
If the banking system has a required reserve ratio of 10%, then the money multiplier is: If Bank A receives a $10,000 deposit and the reserve requirement is 10%, how much does Bank A have available to loan out?
Douglas Boats is a supplier of boating equipment for the states of Oregon and Washington. It sells 5,000 White Marine WM-4 diesel engines every year. These engines are shipped to Douglas in a shipping container of 100 cubic feet, and Douglas Boats ke..
Injection molding machines are needed to be replaced at a company. The list is narrowed down to two options based on various parameters like screw diameter, injection pressure, injection capacity, rate, and screw rpm and so on. calculate the PW of th..
q1. apparent motion is dependent on factors other than isi. describe the various factors that would affect ones ability
Based on Figure 1 if the Mexcian government imposes a per-unit tariff of $2.5 on calculators, the total quantity of calculators produced by Mexicans producers at equilibrium with international trade is
Discuss the opportunity costs of natural disasters. Calculate (in $$$) your opportunity costs of natural disaster.
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