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Oceana is small country. Using the open-economy macro model, trace the effects of the following actions on savings and investment in Oceania and Oceania’s trade balance. Make sure you explain the transmission mechanism of these effects with graphs.
a. Oceana reduces the taxes
Illustrate what is her MPC (Marginal Propensity to Consume) in this case.
A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the ..
If both demand decreases and supply increases then for sure. Which of the following will decrease the demand for chicken?
In the classical theory what factor determines aggregate demand, which in turn determines the price level? According to classical theory what three factors lead to long-term economic growth?
A consulting firm submitted a bid for a large research project. The firms management initially felt there was a 50/50 chance of getting the bid. However, the agency to which the bid was submitted subsequently requested additional information on the b..
Explain why, even though free trade may be good for the economy, we still have trade barriers (tariffs, quotas, regulations, subsidies, etc.) Relate your answer to the Stolper-Samuelson theory and the concept of “specific factors.”
How are customer expectations today different from customer expectations of say 10-15 years ago? What are some reasons that contribute to that change's expectations regarding the level of customer service received?
For a firm to minimize its costs with more than one factor of production, for every factor, the
Define and describe the five international environmental forces that impact international business. Associate a company in our marketplace that utilizies each individual environmental force
Monopsony and the Minimum Wage. A monopsonist firm operates according to the production function: Y = L where L is labor. Workers supply labor to the firm according to the following labor supply function: L = (alpha)(w). Write down the full the profi..
Which of the following arguments do you support? Why? low voter turnout is not an indicator of trouble, as it signifies satisfaction with the status quo
Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..
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