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a. Explain how a budget deficit might lead to an appreciating currency and a trade deficit. (use foreign exchange market diagram in answer)
b. Explain the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the closed, economy. (Use AD/AS model diagram in answer)
c. According to economists, what is (are) the true cost (s) of a budget deficit. Does the "Opening up" of an economy change the type of costs a deficit produces? (Use investment/savings model to answer)
The Fed attempts to increase the money supply to stimulate the economy, but plants are operating at 65 percent of their capacities and businesses are pessimistic about the future.
Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. Delta will realize a p..
A particular item has demand of 3000 units per year. The cost of one procurement is Rs. 100 and the holding cost per unit is Rs. 2.40 per year. The replenishment is instantaneous and no shortages are allowed.
Using the money market and bond market analysis explain how the Federal reserve could lower the interest rates by buying government bonds from the banking sector of the U.S. economy ( should included two graphs and an explanation)
Which of the following possibilities is consistent with the property of diminishing marginal product.
Mr.A makes $50,000 a year and pays $10,000 in taxes. Ms.B makes $30,000 a year and pays $6,000 in taxes. Find the tax rate and after tax income for each of them. Identify what type of tax this is. Consumption is $6 trillion, investment is $2 trilion ..
Analyze these indicators and prepare a 3-4 page report elucidate the expected short-term impacts on firms in any one of the following five industries in terms of product sales.
What value of y survives as a solution if all firms are competing for high ability workers.
When quantity supplied increases at every possible price, we know that the supply curve has
Illustrate what would be the effect of poor weather on the consumer surplus, producer surplus, deadweight loss.
Assume the size of the expenditure multiplier is ?G = 2. What is the effect of an increase in government purchases by ?G = 200 on income and the interest rate? By how much will private investment be crowded out as a result of this increase in governm..
consider the following islm model for a closed economyc4000.4yd i2000.3y-2000i g360t400 mp4y-100000ims2600 10
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