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The Fisher hypothesis
a. What is the Fisher hypothesis?
b. Does the experience of Latin American countries in the 1990s support or refute the Fisher hypothesis? Explain.
c. Look at the figure in the Focus box on Latin America. Note that the line drawn through the scatter of points does not go through the origin. Does the Fisher effect suggest that it should go through the origin? Explain.
d. Consider this statement: "If the Fisher hypothesis is true, then changes in the growth rate of the money stock translate one-for-one into changes in i, and the real interest rate is left unchanged. Thus, there is no room for monetary policy to affect real economic activity." Discuss.
Wilma bought a 10-year $1000 bond when the interest rate was 5% per year. So her bond would provide her with $50 at the end of each of ten successive years; and the $1000 is also returned at the end of ten years.
What lessons can be derived from Boserup's analysis?
What is the Nash equilibrium to this game?
All of its current sales are to private sector customers and each pays $12.00 per unit for the equipment. The sales price is equal to 150% of average variable costs. A government agency has offered to purchase 300,000 units at $10.00 each. If Comp..
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Why is the pollution haven hypothesis more likely to be correct in the case of recycled batteries than in the case of sock production?
Damaged goods and obsolete items have been properly accounted for.
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