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Suppose that the Bank of Canada decides to expand the money supply.* Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate?* What is the effect of this policy on the interest rate in the long run? How do you know?* What characteristic of the economy makes the short-run effect monetary policy on the interest rate different from the long-run effect?
Suppose that survey measures of consumer confidence indicate that a wave of pessimism is sweeping the country.* If policy makers do nothing, what will happen to aggregate-demand?* What should the Bank of Canada do if it wants to stabilize aggregate-demand?* If the Bank of Canada does nothing, what might Parliament do to stabilize aggregate-demand?
What is the theory of liquidity preference? How does it help explain the downward slope of the aggregate-demand curve?
Use the theory of liquidity preference to explain how a decrease in the money supply affects the aggregate-demand curve. Consider the effects in both a closed economy and a small open economy.
In 1981, the United State negotiated a contract with the Japanese. The contract called for Japanese auto firms to limit exports to the United State.
Determine the effects of one country pursuing expansionary fiscal policy and tight monetary policy?
Political Economy and Foreign Direct Investment - Review the country's political economy
The table given below shows the values of two goods. Assume wheat is produced in the United State and coffee beans are produced in Kenya.
Explain How do economists distinguish between the absolute and relative sizes of the public debt? Why is the distinction important?
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
Following the reduce in the demand for the Baht, has the Baht appreciated or depreciated in relation to the United State dollar?
Alu City is a manufacturer of aluminum products for building industry and has experienced a high growth rate due to an increased demand. The corporation shares are currently being traded at 410 cents each share.
The consumption function is given by C = 200 + 0.75(Y - T ). The investment function is I = 200 - 25r, r is the real interest rate. Government buy and taxes are both 100.
Assume you hear a commentator on radio state that when interest rates fall, the stock market (the Dow Jones average say) tends to rise.
If the average price of goods in Europe increase from 100 in year 2000 to 130 in year 2010. If the average price of goods in the U.S. rises from 120 in year 2000 to 140 in year 2010.
Authorized and available shares Aspin Company charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding and 100,000 shares are being held as treasury stock.
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