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The treasurer of a U.S. firm noted that although short run deposits in Swiss bank accounts had earned the firm only a 3% annualized return when measured in Swiss francs, in dollars the firm had realized a 12% rate of return. Explain as precisely as possible how this was possible.
Describe by what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
Elucidate why the U.S. would subsidize the short run cost of production for tobacco farmers in foreign countries.
Price benefit analysis of an irrigation project describes the ratio of the discounted current value of benefits to costs is less than one.
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
One of the major issues in macroeconomics is disagreement in the debate over policy activism versus policy rules. Illustrate what exactly is that disagreement.
Black Diamond Tennis & Golf Club offers golf and tennis memberships to residents of Black Diamond, Ohio, in which there are 2-types of families:
Discuss why the same types of problems may exist in government as well, where elected officials are the agents and voters are the principals.
Illustrate what factors might explain closer than expected correlation observed.
Elucidate why the general level of wages in high in the United States and other industrially advanced countries.
Each of the following headlines describes an event that will have an effect on desired aggregate expenditure
Illustrtae what is the value of a forward contract in terms of the current stock price, the interest rate, the delivery time.
Assume the Federal Reserve sells government securities from its existing holdings to the financial sector and the non-bank public.
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