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Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit.
(a) What happens to the investment in our small open economy?
(b) What happens to our trade balance?
(c) What happens to our real exchange rate?
Consider a market with two firms, each with constant marginal cost of $100 and facing a market demand curve of P=1000 - Q where W is total output of the two firms. Suppose they choose simultaneously, what is the Cournot Nash Equilibrium for this situ..
Illustrate what is the new level of gross national debti. If 100 percent of the deficit is financed by the sale of securities to federal agencies.
Elucidate how the investor's curves would appear if she adopts the 50:50 strategies but would not accept any additional return.
Explain how the price-specie-flow mechanism operates to maintain balanced trade between countries. What are the assumptions that are critical to the mechanism's successful operation?
Suppose a firm has a constant marginal cost of $10. The current price of the product is $25, and at that price, is it estimated that the price elasticity of demand is -3.0. Is the firm charging the optimal price for the product?
Outline the elements of an IMF stabilization package. Provide example of a country- one where the package has not been successful in heloing with the balance of payment deficit. Explain in detail why the package failed in that country. Be sure to cit..
Credit Card issuer have culture that focus on growth by targeting financially strapped people. Assume that you are a member of congress, what would you do? Create legislation that does not allow credit-card issuers to raise interest rates for those w..
Use the AS-AD model to describe what would happen to the price level and to the equilibrium level of aggregate output in the short run in the following situations: The Fed buys bonds in the open market during a period of low unemployment and no exces..
What is smallest integer price that would make a firm willing to produce a positive amount. Suppose that Dent Carr's long-run total cost of repairing s cars per week.
There is much discussion in the press about several states moving to legalizing marijuana, either for only medical purposes, or more extremely, for recreational purposes. What will happen to existing supply avenues? Would one expect prices to change ..
Elucidate which of the subsequent statements is correct regarding the equilibrium cost also quantity of X.
q1. options traders appeared to be taking a bullish approach to target.illustrate what does a bullish approach mean?
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