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Describe how does choice of an exchange rate regime alter conduct of monetary policy. In addition, please also explain when it tend to increase the power of the monetary authorities and when to decrease their power.
In September 2003, a United State retailer wants to buy canola oil from a Canadian farm. At that time in Canada, one barrel of canola oil value C$2.
Discuss how do government bureaus differ from private firms and explain why is there good reason to believe that bureaucrats will seek to supply more than efficient level of their output in any year?
Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea
Information covering the most recent thirty days are given in the following table for the value per gallon of regular gasoline at a local station.
If the average price of goods in Europe increase from 100 in year 2000 to 130 in year 2010. If the average price of goods in the U.S. rises from 120 in year 2000 to 140 in year 2010.
n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.
Alu City is a manufacturer of aluminum products for building industry and has experienced a high growth rate due to an increased demand. The corporation shares are currently being traded at 410 cents each share.
May rise or reduce in absolute value as one moves southeast along an indifference curve, depending upon whether the substitution or income effect is dominant.
In exchange for a $20,000 payment today, a well known company will allow you to choose one of the alternatives shown in given table. Your opportunity cost is 11 percent.
A bicycle produced in the U.S. costs $100. Using the exchange rates listed in Table 1, what would the bicycle cost in each of the following nations?
Assume that both the stock market and housing prices fall in the United State 1st, describe the channels through which these shocks affect aggregate demand for goods and services.
Assume that under the Bretton Woods system, dollar is pegged to gold at a rate of $35 a ounce and pound sterling is pegged to the dollar at a rate of $2 = £1.
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