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Consider a case of small open economy. In this economy, there is an IT revolution, and as a result the productivity of the economy has gone up. What will be the eject of this productivity increase on interest rate and net export in this economy? Use the model to explain you answer.
(a) What will be the long-run impact of an increase in budget deficit in a closed and in a small open economy?
(b) What will be the long-run impact of an increase in budget deficit in a large open economy like the U.S.?
(c) Explain the impact of an exogenous increase in world savings on large economy's investment, interest rate, exchange rate, and trade deficit?
(d) Do you agree with the "Savings Glut" hypotheses that argue that the low interest rate in the U.S. between 2000-2007 was caused by excess savings in the developing countries?
A business owner used a revenue function and a cost function to analyze his monthly sales. One month he found that with a sales volume of 600 items he had revenues of $10,200. Another month he had total costs of $4,700 on a sales volume of 400 items...
By itself, the substitution effect of an increase in the wage rate will
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following 1 loan balances and APRs: Card 1, $4,500, 19%; Card 2, $5,700, 23%; and Card 3, $3,200, 15%.
Suppose the two states decide that they want to produce 590 units of wheat together (not 590 units of wheat each). What is the maximum amount of cotton that they could produce?
Explain how would each of these traps impact the production possibilities frontier.
If the economy decides to achieve the Golden Rule level of capital also actually reaches it, illustrate what will be the marginal product of capital.
Suppose that inflation was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?
Microeconomics approaches the study of economics from the viewpoint of a. individuals or specific markets. b. the operation of the Federal Reserve. c. economy wide effects d. the national economy
Should the seniority rule be eliminated, what is MOST likely to gain greater influence over the process of selecting committee chairs.
The research department of the COLLEGE STUDENT BLUE-JEANS has estimated the income elasticity of demand for blue-jeans of the Gap Corporation to be 2. Further, most economic forecasts predict a 3% increase in incomes for students during the upcoming ..
Calculate GDP loss and government expenditure needed to eliminate this loss if full employment GDP is $400, unemployment rate 8.9%, and the MPC is 0.8.
q1. in which of the following cases should the united states produce more noodles than it wants for its own use and
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