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Presume that the Malaysian ringgit is pegged to the US dollar at 2.5 ringgit/$. The central bank of Malaysia has $1 billion of international reserves left. Malaysian banks offer short term loans and deposits for any amount at an interest rate of 10 percent. Agents expect that if foreign reserves are exhausted, the Malaysian ringgit will depreciate to three ringgit/$. How would you attack the peg if you were a speculator? How much profit can you make?
Would warehouse operators insist on owning their own trucking companies What coordination and control problems and contractual hazards would these companies encounter What organizational form would warehouse operators and truck hauling companies a..
Using an indifference curve, illustrate Lorne's decision if he decides to work 10 hours per day. Calculate, and in your diagram, identify, Lorne's quantity of leisure, supply of labour, and consumption. What is the price of leisure
1 at a price of 100 beachside canoe rentals rented 11 canoes. when it increased its rental price to 125 9 canoes were
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Research in developing countries indicate that the incidence of child labor actually rose in some countries as incomes (and wages) of poor families increased. This is difficult to understand since many people assume that as incomes rose, the inci..
Include academic research to support your ideas
Discuss a fiscal policy that has a societal and/or civic impact
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Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..
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