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Assume that foreign inflation is 3 percent and domestic is 2 percent. How much higher/lower than the surrounding world’s nominal rate must the central bank mark their domestic nominal interest rate so that the real exchange rate will be unaffected?
Describe in detail why
Each of the players chooses an (integer) amount between $180 and $300. Both players receive the lower amount. Five dollars are transferred from the player who chose the larger amount to the player who chose the smaller one. Find the Nash equilibria f..
What are the characteristics that define incremental/do better innovation, radical/do different innovation, and existing frame/new frame innovation? Which innovation activity is the most risky, and why?
In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front.
When the government imposes a binding price ceiling on a competitive market, a shortage of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.
Assumptions make the nation easier to understand because they simplify reality and focus our attention.
A technology is invented that makes labor and capital perfect one to one substitutes in the production of Mint Chocolate Chip super High fat Ice-cream.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk-averse, risk-neutral, or risk-lover?
Within which sections of the production function is marginal product increasing. Explicate the link between scarcity, choice and opportunity cost
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Derive the LM curve when the money supply increases by 500. Derive the LM curve when money supply decreases by 10%. Find the value of money demanded when income Y = 15,000 and interest rate R = 5. Is this equilibrium? Why? Why not?
Define the correlation between two random variables X and Y. What does the correlation coefficient measure?
Find the present-value equivalent to the following geometrically increasing series of payments.
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