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Consider an increase in U.S. investment demand. Draw a complete and fully-labeled diagram of the open-economy macroeconomic model to illustrate your answer. What happens in the market for loanable funds, to net capital outflow, and in the market for currency exchange?
In the US health insurance reform of 2010, every individual is entitled to get an insurance contract, with possible government subsidy if it is not profitable for the private companies. Discuss the consequences for the insurance market of the refo..
Greece has few workers per unit of land while France has many workers per unit of land. Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model. The price of land use in Frances steel industry.
calculate the money creation in the U.S. banking system with required reserve ratio at 0.20 in each of the following cases: (a) Sam's parents wired him $100,000 from Japan. (b) Sam won $100,000 from Texas lottery. (c) Sam found $100,000 worth coll..
If the European euro were to depreciate relative to the United State dollar in the foreign exchange market, would it be easier of harder for the French to sell their wine in the U.S.?
Prepare journal entries to record the revaluation on 1 July 2013 and the subsequent sale on 1 July 2014 and revaluation and de-recognition of depreciable assets
Consider the costs of the new American producers who produce silk only after the tariff is inplace. What area on the graph shows the amount by which their total costs are higher than thetotal revenue that foreign producers would receive to produce..
Assume that the Kiribati can manufacture 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can manufacture 750 tons of breadfruit or 1875 tons of fish.
Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". O..
In the first quarter of 2009, President Obama pushed his massive fiscal stimulus package of $862 (It was originally at $787 billion) through the Congress and later passed by the House and the Senate, whose centerpiece was spending most of this sti..
Assume that in England five man hours of labor are needed to make each cask of wine and five man-hours are needed to produce each bolt of cloth,
After a frenzied month of legislating, the House and Senate produced an economic stimulus bill estimated yesterday to cost $787 billion, with $281 billion in new tax cuts and the remainder in one-time spending on infrastructure investments, expand..
A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much strong..
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