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What factors underlie a nation's decision to adopt floating exchange rates or fixed exchange rates? How do managed floating exchange rates operate? Why were they adopted by the industrialized nations in 1973? Has the abandonment of the Bretton Woods system of adjustable pegged exchange rates been beneficial or detrimental to global financial stability?
Elucidate the multiplier concept as it applies in this case. What are the qualifications and limitations of the multiplier model.
Summarize in words the predictions and limitations of the theoretical framework developed for the first exam: that is the predictions for the effect of capital accumulation.
how many standard errors it is away from zero. If it is not very far from zero n we might ignore it; if it is far away from zero n we might consider it important. But how far is ‘far'.
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
Does the covered interest parity condition hold? Why or why not?b. How could you make a riskless profit without any money tied up assuming that there are no transaction costs in buying and or selling foreign exchange?
Which of these two strategies do you think would have the greatest impact on sales volume. Explain
The marginal revenue generated for the monopolist by the 13in unit of its product is $6. What is the market-clearing price for the monopolist's product when 13 units are supplied to the market?
can increase the natural rate of unemployment. Is this something that policymakers should be concerned with? Explain.
During the purchasing decision, evaluation stage, the consumer forms preferences among the brands in the choice set.
Suppose the demand curve for a monopolist is q=500-p, and the marginal revenue function is mr=500-2q. The monopolist has a constant marginal and average total cost of $50 per unit. Elucidate what is the lerner index for this industry.
Elucidate how do the firms decide how much to charge. Use the Cyberlibrary or internet search engines to pick your own example of price discrimination.
Explain how does one construct a linear (or other mathematical program) to solve a competitive or walrasian equilibrium problem.
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