Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Below is a summary of the economic situation as of 2013.
$1 equals 0.6 pound.
U.S. interest rate is 0.02.
U.K. interest rate is 0.03.
It is expected that $1 would equal 0.8 pound next year.
U.S. price index is 1.
U.K. price index is 1.2.
A. What is the nominal exchange rate in 2013? What is the expected nominal exchange rate for next year? Which currency will appreciate?
B. What is the real exchange rate in 2013? What is the economic meaning of the real exchange rate?
C. The interest parity condition is given by 1+i =(1+i*)E/E(e) , where i is the domestic (U.S.) interest rate, i* the foreign (U.K.) interest rate, E and E(e) are the actual and expected exchange rate, respectively. Considering the interest parity condition and the information above, are we likely to observe capital inflows into or outflows from the US? Explain why. Discuss the ultimate effect on the nominal exchange rate if this situation (capital inflows or outflows) lasts for a considerable period.
If the price in this market were $160, explain why this would not be the market equilibrium price and find the equilibrium price and equilibrium quantity exchanged for this market.
What is the short run shut down price for each firm and how does this short run shut down price differ from the long run shut down price?
Estimate the linear demand equation
Assume that the government proposes to cut taxes while maintaining current level of government expenditures. To finance this deficit, it may either
Marginal rate of substitution increases as he or she consumes more of a good.C. the law of diminishing marginal utility holds.
what level of output are your average variable costs minimized and at what level of output are your average total costs minimized?
Analyze the past, current, and future cost considerations of the company and, on the basis of your costs analysis, create a list of strategies to enhance the company's profit. In your analysis, include the following information about the various c..
The difference between the average earnings of eye surgeons and those of janitors is an example of
There is an inherent tendency in industry to substitute labor with fixed capital and employers can compel workers to produce more than the value of their labor.
Find out the total revenue (TR) and total profits in terms of Q. At what level of output (Q) are total profits maximized? What price will be charged? What are total profits at this output level?
Assume that the two rival "Super Stores", Walmart and Target both adopt price matching rules. If people can discover lower advertised values on any items they sell, then they will match the lower prices.
The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd