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Q1. Describe how a developing/emerging economy can benefit from trade with a wealthy country even if it has no absolute advantages.
Q2. How a country's trade deficit could stimulate economic growth within its borders.
Q3. From a cost/benefit perspective, how should environmental quality be addressed in developing economies?
The impossible trinity refers to the idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.
Compare the effects of the two policies, based on the models developed. Why might the United States have preferred one policy over another.
If one draws MC curves pre and post innovation as well as the Marginal Revenue line for a monopoly and the MR in a competitive situation.
School tries to discourage Twinkie consumption by raising the price to $.40, by how much will Matt's mother have to increase his lunch allowance to provide him.
Susie's boss offers her $100 to come to work instead. In considering what to do, which of the above would be considered a sunk cost.
Find the equilibrium price and quantity after the shift of the demand curve.
If at an interest rate of 7 percent, planned investment is $2 trillion, government spending is $3 trillion, net taxes are $2.8 trillion, and household saving is $2.2 trillion, what is the quantity of funds demanded at an interest rate of 7 percent..
Analyze the USA financial meltdown that happened in 2008-2009. This crisis was partially caused by the reward systems that were in place for participants in the financial system. Identify the major participants in the financial system.
Suppose that only data on in action were published but not on claims for unemployment. What would be a reaction of the USD/EUR in that case.
The United States is experiencing a recession and Congress decides to adopt an expansionary fiscal policy to stimulate the economy.
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