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Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). (1) If US is running a 5% inflation rate solely due to the increase of money supply, what is the inflation rate Mexico should run? Explain your answer.
Mrs. Smith is earning a loss and should shut down in the short run. Mrs. Smith is earning a loss but should continue to operate in the short run. Mrs. Smith is earning a profit since the price is above the average variable cost.
How is the effectiveness of team selling demonstrated by the Reynolds team, and what are some of the vantages to this method in this particular case?
All else held constant, the choice whether to use labor intensive production process or capitla intensive one depends on; 1. whether the compnay is growing or shrinking. 2. the relative prices of capital labor 3. the type of market in which the firm ..
Which policy monetary or fiscal would be more appropriate to improve the situation. Explain your choice clearly using figures.
can you think of any financial innovation in the past ten years that has affected you personally? has it made you
What is this firms total cost function, average cost function, average variable cost function and marginal cost function.
Elucidate the law of demand. Why does a demand curve slope downward. How is a market demand curve derived from individual demand curves.
Ryan has $200 per week to spend on gas and food. The price of gas is $4/gallon and the price of food is $2 unit. What is the opportunity cost of an additional unit of food in terms of gallons of gas? What is the opportunity cost of a gallon of gas in..
The Newspaper reported that insurgents in Saudi Arabia had taken over a major oil refinery. What would you predict would happen to the average price and quantity exchanged in the market for gasoline in Saudi Arabia?
q. suppose a government has no debt and a balanced budget. suddenly it decides to spend 1 trillion while raising only
Can an economy be faced with endless trade cycles also still have its Real GDP grow over time?
Given a binomial random variable with n = 60 and p = 0.36 find the probability of obtaining between 25 and 35 successes inclusive, to three decimal places.
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