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If the US inflation rate becomes high relative to Canadian inflation the following outcomes will occur for the scenarios listed - a) The demand for Canadian dollars will increase; b) The supply of Canadian dollars available for sale in the market will decrease; c) The value of the Canadian dollar will increase Assuming all other things remain equal. Is not the converse true? Given π = m + v - y, and given that the situation shows no evidence of a change in the rate of velocity or of national income, an increase in inflation reflects a direct increase in nominal money supply, m. Correct?
The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:
Your current car has a trade-in value of $12,600. A new car can be financed at a nominal interest rate of 4% compounded monthly. How much will your monthly payments be?
In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to incr..
Polan's book Affluenza, shows us just how to grow, process, and distribute food sustainably, yet if we are going to avoid eventual collapse as a society, we'll need to figure it out. Build a picture or the various issues that need to be addressed in ..
What are some of the unintended consequences of efforts to regulate the illicit global economy? How can states more effectively reduce the negative consequences of black markets?
Describe aggregate supply from a classical economist’s perspective. P(t) = US$2 per coconut; E(t) = MX$1 per US$; P ROW(t) = MX$3 per coconut. a. What is the real exchange rate? b. Does purchasing power parity hold? Give three reasons why the purcha..
Assume the price falls to $ 7.50. What think would be a short-run impact on the production of the company. What would be the long term.
Compare the competitive price charged and quantity produced under perfect competition and monopoly. Other than identifying the presence of only one producer under monopoly, why do we tend to see this differential? Does a monopolist achieve efficiency..
You only buy apples and bananas. Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas. Write the equation for the budget line with bananas on the y-axis. Is that equation unique.
long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at. Keeping all else constant their answer..
If a monopolist can find buyers for 10 units at a price of $40, and if the marginal revenue due to the 11th unit is $18, the highest price at which the monopolist can find buyers for 11 units must be
In a zero-sum game
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