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1. What is the meaning of an account labeled "statistical discrepancy" or "errors and omissions"? If this account is a credit, what does that imply about the measurement of other items in the balance of payments?
2. Why must the national income of a closed economy equal the national expenditures of that economy? What separates the two concepts in an open economy?
3. Explain why private national saving plus govern- ment saving equals the current account of the balance of payments.
4. It has been argued that the high correlation between national saving and national investment that Feldstein and Horioka first measured in 1980 is not evidence of imperfect capital mobility. What arguments can you offer for why they might have misinterpreted the data, and what do recent investigations of this issue imply about the degree of capital mobility throughout the world?
Industrial organization or market structure refers to the characteristics of a market or industry, such as the type(s) of product, number and size of firms, ease of entry into industry, cost of exiting, independence of action etc.
If thevalue of multiplier is 2.49 then find out: MPC MPS What is the relationship between the value of multiplier and MPC?
When a company chooses their distribution channels, they must keep in mind that each channel member must be given the opportunity to be profitable. The main elements in the "trade-relations mix" are Price policy, Conditions of sale, Distributors' ..
Write your individual answers to both questions listed above together not each minimum 300 words in essay format in APA style
In April 2011, the money supply, as measured by M1, was approximately $1,917 billion. The monetary base was approximately $2,494 billion.
Think IS LM BP model of an open economy with sticky price levels in local currency, perfect asset substitutability, perfect capital mobility and static expectations.
Elucidate the organization/industry reduce production or shutdown their operations? Explain your reasoning.
Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The production-possibilities schedules in the table below describe their potential output in tons per year. (a) What is the opportunity cost of pearls on..
Explain the difficulty of defining and using the user cost of capital and discuss the value in making decisions based on it, rather than using accounting expense data. What is the difference between opportunity cost and accounting costs
Jim Duggan made an investment of $10,000 in a saving account 10 years ago. This account paid interest of 5½% for the first 4 years and 6½% interest for the remaining 6 years. The interest charges were compounded quarterly.
An increase in TFP leads to an outwards shift in labor demand (recall this from our firm analysis unit), which, as long as the upward-sloping labor supply function does not shift, leads to an increase in the real wage.
Why would firms in such an industry have little incentive to carry out technological change or much research and development.
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