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Jamaica is a small open economy that has a trade surplus. Use savings/investment diagrams to answer the following:
a) Suppose the Government of Jamaica decides to raise taxes. How will the equilibrium amount of savings, investment, and trade balance be affected?
b) Suppose that scenario a) above never happened. Consider instead the case where the US, a large open economy and Jamaica's largest trading partner, had passed a tax increase. How would Jamaica's equilibrium savings, investment, and trade balance be affected? Use one S-I diagram for the US, and another one for Jamaica. How is Jamaica's currency affected? Please explain
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Using the Fisher equation Illustrate what can you infer about expected inflation in Canada also in the United State.
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In many countries bribery is actually an accepted, understood, and expected way of doing business. To this end, you own a company and you’re in, of course, a competitive market. What is the relationship between corruption in a country (i.e., bribe-ta..
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Joe won $365,000 a year for life in the state lottery. Use the labor-leisure choice analysis to answer the following. show how Joe's lottery winnings affect the position of his budget line. Joe's utility function for goods per day (Y) and hours of le..
Why is their a growing disparity between the rich and poor in the US? What are some of the reasons for this and what should the government do to bring about growing equality with income? Do we as citizens have an ethical responsibility to help the po..
Raytheon is producing an air-to-air missile. The cost of the 500th missile is estimated to be $300,000 and the learning curve is 88%. What is the estimated cost of the 600th missile? What is the total cost of the lot of missiles from unit 601 to unit..
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