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a. How does a budget deficit lead to an appreciating currency and a trade dificit?
b. Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, economy.
question consider that a country can produce just two things goods and services. suppose that over a given period it
If Alisha Maintenance manufacturing then how would Alisha's management improve its cost function to better understand their past maintenance costs and predict future maintenance costs.
Firm A currently monopolizes its market and earns profits of $10M.Firm B is a potential entrant that is thinking about entering the market.If B does not enter the market,
Does microeconomics apply to every nation in the world. Explain your reasoning. and explain the specifics of any cases or examples you use and the implications of similar on local citizens of that country.
The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs.
Using the basic IS-LM model in the open economy, analyze the effects of tax increases on the equilibrium output (Y), nominal interest rate (i) and the nominal exchange rate (E). Is the effect of higher taxes on output smaller
which would be least likely to cause the production possibilities curve to shift to the right a. an increase in the labor force b. improved methods of production c. an increase in the eduction and training of the labor force d. a decrease in unemploy..
"Monopolistic competition is monopolistic up to the point at which consumers become willing to purchase close-substitute items and competitive beyond that point." Describe
Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes
Name at least two legislations to prevent monopolization of businesses
mutual fundsa take in deposits from savers and make direct loans to borrowers.b provide another source for borrowers to
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
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