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Assuming that absolute purchasing power parity holds, what should the U.S./Canadian exchange rate be if the CPI in Canada is 225 and the CPI in the U.S. is 179 and the U.S. interest rate is 6%?
Debt issued by Southeastern Corporation currently yields 12%. A municipal bond of equal risk currently yields 8%. At what marginal tax rate would an investor be indifferent between these two bonds?
The price mechanism would be least important under which kind of economic system? a) capitalism b) socialism c) communism d) fascism
Do you think that monetary policy should cooperate with fiscal policy? If so, why? How could their joint actions affect the level of the debt-to-GDP ratio?
Developing nations are often concerned that their terms of trade might deteriorate as economic growth occurs.
How will households and businesses react if the central bank reduces the money supply by $25 billion Households and businesses will not react OR Households and businesses will increase spending OR Households and businesses will reduce spending.
Governor Brown, from the state of Taxafornia, wants to increase sales taxes to bring in badly needed revenue to support state operations. He is looking at taxing various goods and services. Will the state tax revenue be great..
If a specific subsidy (negative tax) of s is given to only one competitive firm, how should that firm change its output level to maximize its profit, and how does its maximum profit change
In addition, pi* is the central bank's target level of inflation , and b is some positive parameter. This rule states that the central bank raises the real interest rate above its long-run level when inflation is above its target and lower when it..
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
Assume the utility function is not the square root of income but instead, utility is linear in income.
Determine the profit maximizing level of output and price. Is this long run equilibrium? According to the theory of monopolistic competition, do you expect entry or exit taking place in this industry?
which is "In the late 18th century, the price of bread in New York City was controlled, set at a predetermined price.", and then show the shift in supply. assume that the predetermined price did not change and the demand for bread did not change.
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