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A) Demonstrate how an increase in personal and federal income taxes ultimately affects Bank of Canada's balance sheet.
b) How are the Bank of Canada's transactions in the foreign exchange market from part (a) reflected in the balance of payments account?
c) Would the impact of the tax cut be larger or smaller under a floating exchange rate regime? Use the AA-DD diagrammatic analysis to answer this question.
Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as ..
Write down some of the characteristics of perfect competition. Which kinds of industries come closest to perfect competition in the real world?
What kind of market structure exists for the oil producers (i.e. the ones who pull it out of the ground and ship and sell it as crude oil)? What does this market structure tell us about the pricing
Assume a decrease in consumers' incomes causes a decrease in the demand for chicken and an increase in the demand for potatoes. Which good is inferior and which is normal? Explain your reasons.
You appoint an intern from Southern University to help you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3Q2.
Recently, there has been a lot of press about high lead content in toys made in China. This negative press can affect the foreign exchange rate in the United States dollar and Chinese yuan.
The demand for personal computers can be characterized by following point elasticity = -5, cross-price elasticity with software = -4, and income elasticity = 2.5. Indicate whether each of following statements is true or false, and describe your an..
Explain the output and price effects which affect the profit-maximizing decision faced by the firm in oligopoly market. How does this differ from output and price effects in monopoly market?
Assume the ratio of deposits that banks hold in the form of reserves is 7 percent. Assume further that people want to hold 8 percent of their deposits in the form of cash.
Johnston production is the price taker which utilizes this cost structure in the short run:
Compute the Modified BCR for MM. Compute the Modified BCR for PP. Which alternative should NJGSP choose and why?
Use supply and demand analysis to describe why equilibrium price of apples will increase and the equilibrium quantity will fall if an excise tax is levied on apples.
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