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Suppose the Bank of Canada contracts the money supply in an effort to reduce aggregate demand by a particular amount, say $10 billion. If Canada was a closed economy, would the amount by which the Bank of Canada would need to reduce the supply of money to accomplish this goal be greater or smaller than the amount it would need to reduce the supply of money if Canada was an open economy with a flexible exchange rate?
For example, if the U.S. sold cars in Japan in addition to Japanese cars being imported into the U.S., that would be cross-hauling. Trade statistics show that many commodities are cross-hauled.
Suppose that with a given unit of labour, India can manufacture 40 basketball hoops or 60 basketballs and Nepal can manufacture 10 basketball hoops or 30 basketballs.
Assume that a nation declares that it is moving toward free trade through decreasing its tariffs on intermediate inputs while maintaining its tariffs on final goods.
In the early 1930s there were a number of bank failures in U.S. What did this do to money supply? The New York Federal Reserve Bank advocated open market buys and list the costs of high inflation.
Review the impact of the minimum wage on the natural rate of unemployment and make at least one recommendation for change (big or small) that would mitigate the impact while still helping the working poor.
Describe the meaning of efficient markets. Why might we expect markets to be efficient most of the time?
Comparative statement information for Douglas Corporation and Maulder Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.
Discuss and explain the difference between comparative advantage and absolute advantage. Also, provide some specific example so I can understand the difference.
Company A manufacture cement sifters. The process includes melting of metals and chemicals which give sifters strength. In the manufacturing process, waste is produced and released into river that runs alongside of the plant.
India`s population is expected to overtake that of China within the next decade, what differences between these two nations could have contributed to this outcome? What are some of differences between the population policies of China and India?
A Company issues $1,000,000 of commercial paper with a maturity of 60 days and a discount rate of 5%. The paper is sold through a dealer who charges 0.25 percent.
If offshore assembly provisions were extended to include more goods and services, what would this do to the actual level of protection provided by a nation's nominal tariff schedule? Describe your reasoning.
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