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The current spot rate between the UK and the U.S. is £0.6528 per $1. The expected inflation rate in the U.S. is 1.8 percent. The expected inflation rate in the UK is 3.4 percent. If relative purchasing power parity exists, what will the exchange rate be two years from now?
Discuss a scenario where either the supply or price of a good or service is intentionally limited by the government.
Cara has available h = 3000 hours per year for participating in the labor market and for leisure. She gets a wage w = $18 for the first 2,000 hours of work. If she works more than that, the wage on the additional hours is increased by 50%. She receiv..
Draw the payoff matrix for this game. Elucidate any possible Nash equilibria in pure strategies for this game.
The student investigated the pricing of oil and gasoline. The study included a comparison of 2014 prices to 2015 prices. Explain the differences observed by means of supply and demand theory. What happened to cause the fall of oil and gasoline prices..
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
While you were visiting London, you purchased a Jaguar for £35,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.35 percent interest per month, compounding monthly, to pay for the car.
Illustrate what impression do you have of multinational firms that have operations in multiple countries.
Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.
Using the calculations from part a, and the methods described in class, calculate a 99% confidence interval for the population mean forecast, where the population 3 would consist of all economists.
Hospitals are engaged in intense competition to fill maternity beds. What type of advertising would hospitals most likely use to advertise their new amenities like hot tubs in every room, filet mignon or lobster on the menu, and afternoon teas for th..
Explain why oligopolists have an incentive to collude or form a cartel and Explain why oligopolists in a collusive agreement might have an incentive to renege on such an agreement.
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
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