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1)Compare and contrast the effect of an increase in Foreign interest rates on Home's economy under fixed and floating exchange rate regimes. Use the IS-LM-FX model for each case (flexible and fixed exchange rates)
2)Why might a country with a fixed exchange rate contemplate capital controls?
Elucidate a monopoly which formed naturally or through vertical or horizontal mergers.
Suppose that the nation with the initial PPF given in the table enjoys a technological breakthrough that enables it to double the production of tractors at each level of food production. Use a diagram to illustrate how economic growth is shown usin..
What is the marginal propensity to consume in Freedonia, and what is the marginal propensity to save?
Determine the quantity demanded, the quantity supplied, and the magnitude of the surplus if a price floor of $42 is imposed in this market. Determine the quantity demanded,the quantity supplied, and the magnitude of the shortage if a pride ceiling..
Discuss the specifics of any cases/examples you use and the implications of same on local citizens of that country.
Draw a supply and demand diagram 2. In equilibrium, how many packs of cigarettes are purchased? What is the equilibrium price? What is consumer surplus and producer surplus in equilibrium?3. Suppose that a flat tax of $1.50 per unit is imposed on c..
The manufacturer of these products has been in business for over 350 years.Your task is to find two more businesses which have also been around for at least over one hundred years.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's?
Elucidate which project should be accepted if the required rate of return for the projects
Since January of 2001 the Fed has reduced its Fed funds rate target from 6.5 percent to 1 percent. Nonetheless, the number of people at work is less than
Let B1(hat) and B2(hat) denote the estimated regression coefficients from a sample of size n for y = x1B1 + x2B2 + u. Show that b1 = B1(hat) + (X1TX1)-1X1TX2B2(hat) where b1 is the coefficient estimate from the regression of y on X1.
Discuss the impact of the national debt on the American economy. Use principles and concepts you have learned in this macroeconomics class.
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