Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider an economy where C=200+0.25(Y-T) I=150+0.25Y-1000i G=250,T=200 (M/P)d=2Y-8000i (M/P)s =1600 X = 0.3Y*, IM =0.2Y, ε (real exchange rate) = 2, Y* is foreign output (Y*=900) 2
a. Calculate the multiplier if the economy is closed and the multiplier if the economy opens up. Explain the economic intuition why two are different with 3-5 sentences.
b. Solve for the equilibrium level of income (Y) for the open economy (Yopen) and calculate the trade balance (NX).
c. Solve for the equilibrium level of interest rate for the open economy (iopen).
d. If government follows an expansionary fiscal policy and G changes by 60, calculate the change in Y for both the closed economy (?Yclosed) the open economy (?Yopen). Assume no change in the foreign output (Y*), Calculate the new trade balance.
e. If this economy has flexible exchange rate regime, how would the exchange rate respond to a fiscal expansion policey? Appreciation or Depreciation? Explain why.
Suppose there is a single consumer with U = Sl, where S is steaks and l is leisure time. The Consumer is endowed with one unit of leisure time, and the production for steaks is S = l / c , where c >0 is a constant. Find the equilibrium consumption of..
Describe the four types of regional trading agreements discussed in class and show how each type creates a greater and greater level of economic integration.
Does one who kills another "deserve" to die? Why or why not? Are there circumstances that would change your answer? Make two lists (perhaps using a table with two columns). Calculations of the likely consequences of assigning that particular penalty ..
Objectives regarding _____ are generally stated in terms of percentage of sales increase and market share. Which of the following statements is true about employee empowerment? As managers move up to higher levels of the organization, _____ skills ha..
Estimate amount of former foreign-monopoly profit that is transferred as tariff revenue to home nation when home nation imposes tariff.
Suppose that the biological mechanics for a fishery are given by the equation F(X) = aX - bX^2 , where X is the biomass of the fishery, and a and b are biological parameters assumed to be constant and positive. What is X MSY , the maximum sustainable..
Identify and explain the incentives for entrepreneurship. Address why someone would willingly take the numerous risks associated with running a business. Also, discuss the major attributes necessary for a successful entrepreneur
A bakery currently sells chocolate chip cookies at a price of $16 per dozen. The marginal cost per dozen is $8. The cookies are becoming more popular with customers, and so the bakery owner is considering raising the price to $20/dozen. What percenta..
Calisto Launch Services is an independent space corporation and has been contracted to develop and launch one of two different satellites. Initial equipment will cost $750,000 for the first satellite and $850,000 for the second.Find the external rate..
Oceana is small country. Using the open-economy macro model, trace the effects of the following actions on savings and investment in Oceania and Oceania’s trade balance. Make sure you explain the transmission mechanism of these effects with graphs.
What are some of Samsung’s greatest competitive strengths, weaknesses, opportunities, threats? Samsung’s goal of $400 billion in sales by 2020 would bring it to the same level as Walmart. Is this feasible? Why or why not? Based on your thoughts of Sa..
Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5,000. However, Richland’s real GDP per person is growing at 1 percent per year, and Poorland’s is growing at 3 percent per year. Compare real GDP per person in the two..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd