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Which of the following statements explains the flaw in your friend’s logic? have to chose one of these options:
Nominal exchange rates adjust for the effects of inflation.
The scheme would work only if the real interest rates are the same in both nations.
The scheme would work only if there is greater inflation in one nation than in the other.
Once the crowding-out effect is accounted for, how will the following events affect the aggregate demand curve, as well as real interest rates? Use a Keynesian perspective. The Federal Reserve issues new discount loans.
Suppose an individual dairy farmer in Northamptonshire decides that going price for milk is too low. Explain effects of this strategy.
Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, as well as marginal costs.
The steady state of the Solow growth model with exogenous technological progress and Cobb-Douoglas technology predicts that the real rental rate (ie: the price) of capital will not exhibit long run growth if the capital input market clearing conditio..
Given a company orders a product and expects the defective fraction, E(p), to be 5%. Demand is 15,000 units annually and they screen at a rate of 60,000 units annually (think of this as the QC check which is done much quicker than demand arrives). Ca..
An economy consists of 2 agents (A and B) and two goods (x, y) . Each agent has and utility function U(x,y)=x^3 y^2= A,B. Agent A has an intitial allocation of (10,50). Agent B has an initial allocation of (20,10). Show that the line that connects th..
An energy manager has $5000 available to purchase a high efficiency air conditioner that has a life of 6 years. The manager would like to know what should be the energy cost savings needed each year to justify the purchase (a) if the interest rate is..
Firm C&D is a monopolist both in the US market and in the international market. The demand curve for the US market is QUS = 10 − PUS and the demand curve for the international market is QI =20−PI. The firm’s cost function is C(Q)=2Q+2. Suppose the fi..
The Acme Paper Company lowers its price of envelopes (1,000 count) from $6 to $5.40. If its sales increase by 20 percent following the price decrease, what is the elasticity coefficient?
In a simple regression model (one X variable only), if the t statistic for the slope is 2.5, what is the value of F. State the null and alternative hypothesis for both tests. How important is the assumption of a normal error term in using the t te..
How do the following theoretical frameworks of international relation and global politics view states and other actors in the international system: realism, liberalism, Marxism and constructivism?
According to the Bureau of Labor Statistics, the distribution of consumer expenditures. If the negative income tax rate is set at 50 percent and the income floor is set at $5,000, a family that earns $3,000 would have a total income (including the in..
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