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The central bank lowers discount to rise the nation's monetary base. The country has highly mobile international capital markets and a fixed exchange rate system. Use the three sector model to solve the following problems.12.3. The current account will ______ and the financial/capital account will _______.A. fall, fallB. fall, riseC. rise, riseD. rise, fall
the average price level is $4 per unit also the quantity of money. Illustrate what happens to velocity if the average price level falls to $2 per unit, the money delivery is $2000 also real GDP is 4,000 units.
Compute the optimal pricing scheme of the iphone, Assume which there are equal numbers of every customer type.
calculate the price elasticity of demand for each product and compare with your teammates' elasticities.
Assume that the returns of these stocks are independent of each other. Find the mean and standard deviation of the total amount that this investor earns in one year from these four investments.
Show that these choices are inconsistent with expected utility maximization.
Determine the new equilibrium price and quantity and how much tax revenue does the government earn with $6 tax.
The 2001 recession ended in November 2001, but the perception of "bad economic times" lingered into 2002 and 2003. What evidence do these graphs provide concerning the lingering perception of a recession.
Illustrate what might cause the world interest rate to rise.
Explain how did mortgage-backed securities spread losses during the mortgage default crisis.
What assumptions do you make answering this question. Elucidate distortions do you think would appear in the economy if such a tax were introduced.
Suppose that the participation variable, voucher, is completely randomized in the sense that it is independent of both observed and unobserved factors that can affect the test score.
Illustrate the marginal revenue curve that corresponds to positive marginal revenue. Line segments will automatically connect the points.
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