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Assume that for an economy the Marshall-Lerner condition does not hold, and further, elasticities are such that the depreciation of the domestic currency actually worsens the current account balance. Also assume that the economy is operating under flexible exchange rates. What will be the shape & slope of the BP curve?
Suppose you see a series of loan payments described in factor notation as follows; P = $500(P/A, 2.02%, 24) Further suppose you know that the interest rate i=2.22% is the interest rate per quarter. What then, is the number of years over which this pa..
Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,200, $10,200, and $16,400 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has deter..
Canada is the largest trading partner for the united states. in 2009 , united state exports to Canada were more than $171 billion and imports from Canada totaled more than $224 billiom. On January 1, 2009, the exchange rate between the Canadian dolla..
Price discrimination: Shooting Star Books is a small publishing company that specializes in science fiction books. Assume that the marginal cost and average variable cost of printing books is $0 per book, and there is not fixed cost. The annual deman..
Did you know that many large countries utilize a national sales tax, or value added tax, to raise revenues? What if, -in an effort to FIX THE ECONOMY, the U.S. decided to do this? What other countries are doing this and to what degree of success?
Suppose that a new law requires every firm to provide its workers with free parking spaces. These spaces are worth $200 per year to workers, but cost firms $500 per year to provide
q.the availability of investment capital is critical for a market economy to grow. explain how this investment capital
Economics is the study of how society manages its
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1.00 per poster. What is her AFC per poster if she prints 10,000 posters? What is her ATC per poster if she prints 1,000..
One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and flooring had undergone a major expansion in the pa..
Consider a (closed) economy in which GDP (Y) equals $15 billion, consumption (C) equals $9 billion, government expenditures (G) equal $2 billion, and tax revenue (T) equals $1 billion. What is national saving equal to in this economy?
Assume the following simple supply and demand model: Assume a supply and demand diagram with P measured on the vertical axis and Qd and Qs measured on the horizontal axis. The sign of the derivative of Qd with respect to Pr suggests which of the foll..
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