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Question1. A nation has a low inflation rate than all growth. It has more rapid economic growth. The central bank does not intervene in the foreign exchange market. What can be said about each of the following (and why):
[A] The exchange rate?[B] The current account balance?[C] The expected exchange rate?[D] The interest rate differential?[E] Interest rate parity?[F] Purchasing power parity?
Question2. The exporting country imposes a VER of three hundred million bushels on its exports of soybeans.[A] Determine the world price of soybeans now?[B] Determine the revenue of soybean growers in the exporting country?[C] Which country gains from the VER?
Elucidate what is the effect of an increase in the quantity of money. What is the difference between real variables and nominal variables.
Tests are supervised by skilled mechanics utilizing equipment produced by two leading competitors in the auto test equipment company
An ice cream shop read in the local paper in which the elasticity of market demand for ice cream
Assume you want to begin a business in an area in which a natural disaster has recently occurred. How would you decide which kind of business to start.
Explain briefly how a change to the following MS, MD, or P would shift LM function to right. Include in your discussion whether the variable would have to increase or decrease to cause the rightward LM shift.
The demand for salt is relatively price inelastic where the demand for pretzels is relatively price elastic. How can you best explain why
Find out the income elasticity of demand. Elucidate whether gas is a normal or inferior product.
What would anything change if unemployment benefits were reduced such that the y-intercept of the MC curve increased four-fold. Show graphically.
Assume we decline to sell goods to any country that decrease or halted its exports to us. Who would profit and who would lose from such retaliation?
Application of Nash Equilibrium and Game Theory with examples
The following item appeared in a major daily newspaper: does this observation in fact violate laws of supply and demand.
Suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater supplies in a watershed by 60% from current use levels.
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