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Suppose that the pound is pegged to gold at 6 pounds per ounce, whereas the franc is pegged to gold at 12 francs per ounce. This, of course, implies that the equilibrium exchange rate should be two francs per pound. If the current market exchange rate is 2.2 francs per pound, how would you take advantage of this situation? What would be the effect of shipping costs?
A new hybrid car manufacturer is trying to decide among making and buying its parts and components. it has complied the following data per vehicle produced:
Beginning in 1994, environmental regulations have required that gasoline contain a new additive to reduce air pollution. This requirement raised the cost of gasoline. The Bureau of Labor Statistics decided that this increase in cost represented an..
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
The Burrito Barn is considering a price reduction on the Firegut Burrito, which currently sells for $5.00. Jim, the owner of Burrito Barn, knows that the price elasticity of the Firegut is roughly equal to -2.3 over the range of prices being consi..
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
It is like the FRB has already tried to stimulate the economy by lowering interest rates
Suppose that Demand and Supply curves for coffee bean is given by-What value of t maximizes Government's tax revenue?
Assume you are a stock market analyst specializing in the stocks of theme parks, and you are examing Disneyland's stocks.
Illustrate what is the practice by a monopolist of charging each buyer the highest price.
Explain when is equilibrium achieved in the foreign exchange market. Why is foreign exchange hedging beneficial to an organization.
If you are the chief economist of a country experiencing high unemployment and flat GDP, what macroeconomic policies might you enact in response to these economic conditions? How would you expect these policy changes to impact the economy?
Identify the normative policy school (Keynesian, New Classical, Supply Side, Monetarist, or Mainstream) which most closely represents your own normative policy views.(let's favor Keynesian policy) Defend your position and offer at least one counte..
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