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Graph the demand for and supply of Australian dollars for euros and label each axis. Ceteris paribus, show graphically and explain the effect of an increase in Australian government budget deficits that increase Australian interest rates on the demand for and supply of dollars and the resulting change in the exchange rate of euros for Australian dollars. Why might the budget deficit lead to a current account deficit?
A political campaign manager must decide whether to emphasize television advertisements or letters to potential voters (mail outs) to potential voters in an election campaign. Describe the "production function" for campaign votes.
It is often the case in economic models that we estimate models using the log of the key variables. Re-estimate the model using the following model:
suppose that in a competitive market for electric power demanded for power is given by the equation p600-q and supply
Suppose the economy is in a recession. Explain an adjustment process using AD and AS examine that will ensure that the economy will return to full employment
Q1. Calculate the principal that will earn a total of £2,535 in 4 years at 3¼% simple interest per annum. Q2. Calculate the amount of interest earned in the first year
Compute the monopolist's optimal price and quantity under the assumption that the monopolist is a quantity setter, i.e. the monopolist chooses the quantity that maximizes its profits. We refer to this as the Cournot model of the monopolist's behav..
During a coffee-room debate among several young MBAs who had recently graduated, one of the young executives flatly stated, "The most this company can lose on its Brazilian division is the amount it has invested (its fixed costs)."
Is the demand for electricity much price elastic when measured over a short period of time or a long period time. Explain.
Illustrate what happens to an individual person's demand curve for BlackBerry phones as the number of other Blackberry users declines.
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity.
The Tax Foundation says this is because of economic growth leading to higher incomes and higher taxes.
a. Describe three panaceas that failed according to the author. b. Discuss the impact that investment has had on economic growth. (based on part 4 of the book).
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