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1) Why are purchasing power parity numbers more meaningful than nominal numbers when comparing GDP's of different countries and GDP of people living in different countries?
2) Why are foreign business activities more complex than purely domestic ones? What must international business have to overcome above complexities?
3) Why is there opposition to global of trade and integrassion of the world's economy?
In the US, realized capital gains are taxed at 15% if they are held for more than a year. Suppose instead that we include realized capital gains (those held for more than a year and less than a year) in income instead so that they are added to an ind..
Unemployment and how to use Fiscal Policy to address Recession. Background for this question: The US economy is currently experiencing recession according to the Federal Government. You can use only Fiscal Policy and the AD – AS model. 1. Using Fisca..
The exchange rate between the U.S. and Japan is floating, e.g. determined by the market. Suppose the U.S. government imposes import quotas on Japanese products. The quotas increase spending on domestic products. How does this affect the U.S. macro ec..
What are the annual accounting costs for the firm described above? What are the annual explicit costs for the firm described above?
What considerations regarding Market Structure are important in your opinion? Is competition really all that different when you get down to basics? Can you think of a theoretical framework that may be useful in considering this issue?
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
What will the new Lerner Index be after some time with the new demand curve and market price of 30? What firms survive the new demand curve in the industry and why?
what is the size of the bank's actual reserves. Required reserves are 10 percent of transactions deposits under the assumptions of the simple multiplier formula, then eventually the money supply will increase by.
Find a current article about one or more of the macro variables for a nation of your choosing, such as GDP, employment, inflation, or international trade.
Suppose the government implemented a negative income tax and used the following formula to compute a family's tax liability: Taxes owed= (1/3 of income)-$15,000. A family earning $60,000 before taxes would have how much after-tax income?
What advantages might a socialist system have in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January, 2010?
During the Great Depression, the Federal Reserve Board
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