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Consider a small open economy in the short run where the government imposes trade tariffs on corn. (a) Given a floating exchange rate sketch a graph of the impact of the tariffs on IS-LM. (b) With a floating exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods? (c) Given a fixed exchange rate sketch a graph of the impact of the tariffs on IS-LM. (d) With a fixed exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods? (e) Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output? (f) Under which regime does the money supply increase by more or less, why?
To what extent does educational planning in the policy decision ought to be guided by economic considerations
Assume that the firms form a cartel to maximize total industry profits. Determine the optimum output as well as selling cost for each firm.
show the impact of the expeted future in gasoline prices on the current demand for gasoline by shifting the demand curve on a graph.
A company employee is considering legal action against her employer. If she came to you for advice, how would you present to her the differences between a stereotype, prejudice, and discrimination? What two laws would you cite (list) to alleviate two..
The Consumer Product Safety Commission is reconsidering a rule it first proposed in 1997 that would require child-restraint caps on household products, including cosmetics. What process must the CPSC follow to promulgate the rules? What do you think ..
The marginal utility for consuming cake (MUC) is 28 and the marginal utility for consuming beer (MUB) is 12. The price of cake (Pc) is $7 and the price for beer (PB) is $4. Find the marginal utility per dollar spent for cake and for beer. What does m..
Assume that the country is in a period of high unemployment, interest rates are at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year. Suggest how fiscal and monetary policy can move those numbers to an acceptable le..
If the marginal product of the 4th worker hired is 6, and the marginal product of the 5th worker hired is 4, you should not hire the 5th worker because your profit would decrease since the 5th worker’s marginal product is less than the marginal produ..
The money multiplier equals 1/R, where R represents the quantity of reserves in the economy. If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply? What does the Fed auction at the Term-Auction ..
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. If the union negotiated a fee of $45 instead, what would you charge private pay pa..
A business group from another country has offered to purchase a franchise of Sandwich Blitz. Dalman and Lei are very interested and quite excited for this opportunity for their business to enter the competitive international marketplace.
Within the past 5 years a certain country ended its almost 2-year peg (fixed) of its own currency to the US dollar. What country was this? What year did it end? Why did it end its fix to the US dollar?
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