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Consider two small open economies that maintain fixed exchange rates and are linked to world capital markets under conditions of imperfect capital mobility. Suppose that the two economies are otherwise identical, except that capital flows (portfolio allocations between domestic and foreign bonds) are more sensitive to interest rate differentials in economy A than in economy B. How could you expect the effectiveness of fiscal policy (it's ability to affect real GDP) in the two economies to be influenced by this difference between them? Explain.
The company uses an effective income tax rate of 40%, and the after-tax MARR of 15% per year. What is the approximated value of the company's before-tax MARR?
Compare and contrast the three different perspectives on sustainability.(weak substainability, Strong sustainability, ecological sustainability). What is your perspective and how would you classify it given the three general views of sustainability w..
If you deposit $2000 in a bank and if the annual interest rate is 2% in year 1 and 5% in year 2 and 8% in year 3, how much money will you have in your account at the end of year 3 if you don’t withdraw any money from this account? Explain your answer..
Increase in demand and increase in supply will lead to?:
Explain how are you morally justifying your decision. Remember to use professional e-mail etiquette when composing your e-mail.
A nation's capital goods wear out over time, so a portion of its capital goods become unusable every year. Last year, its residents decided to produce no capital goods. Will the nation's economic growth rate for the current year be negative, zero, or..
What happens to money supply and interest rates in general if Federal Reserve is a net seller of government bonds.
Europe has leveled off at Illustrate what fraction of GDP every capita in the United States.
I have noticed that politicians continue to advocate an increase in the minimum wage. Politics and political manoeuvring aside, is there an economic reason as to why a higher minimum wage would benefit the economy?
The legislative branch of the American government is bicameral. In a minimum of at least two well-written paragraphs, define and discuss the advantages of a bicameral legislature, including how and why this came about. Reference should be made to the..
Xon, a small oil equipment company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate it using MACRS depreciation. The drilling rig has been leased to a firm, which will pay Xon $550,000 per year for 8 years.
Illustrate what changes in the Ants' resources do we see through the film. Are the Grasshoppers commercial talent and they are just annoying.
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