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Assume the economy has flexible exchange rates and perfect capital mobility. Use the IS-LM-UIP diagram to show the changes in output, the interest rate, the nominal exchange rate, and the trade balance, for each of the following:
i. A nominal depreciation of the exchange rate. 4
ii. A nominal appreciation of the exchange rate.
iii. An increase in the interest rate.
iv. A decrease in the interest rate.
v. An increase in government spending.
vi. A decrease in investment for any given interest rate.
You are manager of BlackSpot Computers, which competed directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses' prospective, the two products are indistinguishable.
Which of the following is an example of adverse selection?
Do you think you can match the different projections? For example, do you think that a 5% increase in income is associated with a 10% tariff rate and a 2% inflation rate? Explain by linking your discussion to at least all of the following concepts. s..
An oil and gas XYZ company expects to produce 200,000 barrels of oil in time to deliver it on March 1, 2015. The management needs at least $30,000,000 for the oil to pay salaries, pay back loans, invest into new equipment, etc.
why the enrollment in colleges also universities increases at times of economic recession
A chemical factory is situated next to a farm. Airborne emissions from the chemical factory damaged the crops on the farm. Using the marginal benefits and costs schedule above, plot a graph that shows the interaction between benefits to the factory ..
Using AS-AD diagrams, illustrate each of the following economic situations by showing the patterns and shifts of either AS or AD that could cause them to happen: a rise in the price level triggered by higher oil prices;
If the money supply increases too rapidly then, Monetary policy probably affects all of the following except, Which of the following is not a channel of transmission of monetary policy?
Suppose that you are the owner and operator of a perfectly competitive firm with the following total cost function.
In your opinion should our government impose price floors and/or price ceilings in our economy.
Illustrate fiscal policy action might increase investment and speed economic growth.
What is the major characteristic of the class system of stratification
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