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The interest rate is tied to the economy. Based on your opinion, will the economy grow or recede for the rest of 2011 and 2012? Will the pace of growth (or recession) fast or slow? The current interest rate is very low. Do you think the interest rate will go up or still remain the same in 2012?
As a result what happened to the AD curve is unclear. An increase in government expenditures shifts the AD curve to the right while an increase in taxes shifts it to the left. Depending on the relative shifts, the AD curve could shift to the left,..
If we had a PPF with the goods oil and lumber, how would be measure the MC of oil between points A and B ?
What two kinds of changes in the capital stock can improve labor productivity. how can each type be illustrated with a per-worker production function.
Using the midpoint formula, calculate the price elasticity of demand for the following problem: Calculate the income elasticity of demand using the general formula for elasticity:
Compute the incremental gain Fluff Rite would earn by customizing its poppers and marketing directly to retailers.
Describe the normal reasons why a currency undergoes asignificant depreciation and what were the importantcharacteristics of the Asian countries involved in the crisis?
Explain how many years would it take to reduce the unemployment rate by 3 percentage points, assuming that the current GDP growth rate will continue into the future.
Assume the forex market equilibrium is given by i = ((i/E) - 1) + .1, where the two foreign return terms on the right are expected depreciation and the foreign interest rate. What is expected exchange rate? Solve for the IS curve: obtain an expres..
Compute the expected utility of each project and identify the preferred project according to this criterion.
An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock.
Assume Company X deposits $100,000 in cash in Commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, Bank A, by itself, can initially increase the money supply by a maximum of
Elucidate what are the effects of monetary policies on the economy's production and employment.
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