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The Long-run Impact of Import Tariff
A country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected? Will this import restriction necessarily improve the home country's trade balance in the long-run? Explain carefully
What is the effective interest rate of an investment if the nominal annual interest rate is 2.09% and it is compounded semi-annually? Express your answers as a percent to two decimal places?
One group of economists, the monetarists, look at the equation of exchange and say that the Fed should simply increase the money supply by an annual rate equal to the long-run growth rate of the economy. Explain the effect that such a policy is likel..
In Where Angels Fear to Tread, we see several different types of relationships. Identify a relationship corresponding to each of Aristotle’s three types of friendship. What is it about each relationship that causes it to fit into that particular type..
Which of the following is a necessary condition for perfect competition?
In July 2007, Scholastic Publishing released Harry Potter and the Deathly Hallows at a suggested retail price of $34.99 and was rumored to be selling the book to retailers at a wholesale price of $18.99. Costco and Walmart offered the book for $18.18..
To synthesize just means to combine various parts or elements together in order to draw conclusions. In a post of between 150 and 250 words, discuss the following prompt: Consider what your textbook says about "nature versus nurture" (Chapter 3) in r..
Identify two factors that would cause the demand curve to shift to the left. Discuss two factors that would cause the demand curve to shift to the right.
Suppose that you test the Linder hypothesis by comparing Germany’s absolute difference in per capita income from each of its trading partners with the size of Germany’s total trade with each respective partner. You find a strongly negative correlatio..
Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..
q1. suppose demand and supply are given by qd 7-12px and qs14p-12determine the equilibrium price and quantitysuppose a
Suppose the economy is in long-run equilibrium when GDP declines by $50 billion. The government wants to increase its spending in order to stimulate the economy and avoid a recession. According to Keynesian theory, how much additional government spen..
The four kinds of free-market competition are perfect competition, monopolistic competition, oligopoly, and monopoly. The following list contains various examples of industries, products, and services. For each, decide on its degree of competition by..
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