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A country that has never had its own currency has formed a central bank and put you in charge of developing money. It needs to perform the necessary functions of any good currency efficiently (i.e., being a medium of exchange, a store of value, and a unit of account). Because your country is interested in trading with other members of the global economy, other nations must have faith in its fitness and the currency exchange markets must be willing to accept it. Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
Rick Nash, a player for the Columbus Blue Jackets hockey club earned $5.25 million this year. The CPI for this year is 225, base year 1983. If Rick were to maintain his current purchasing power how much would he have earned in 1983?
Did the economic recession we've experienced recently affect your organization
llustrate what happens to the money supply. Elucidate how would this change the incentive structure facing depository institutions.
Suppose a wage increase from $25 to $27 an hour increases the number of job applicants from 52 to 66. Illustrate what is the price elasticity of labor supply.
Explain how does the capital/financial account differ from the current account. Give examples of what is included in each.
Cigarettes are also heavily taxed. Illustrate what effect does this tax have on cigarette consumption
Compute the profit-maximizing price and output levels assuming Pear acts as a monopolist for its product. Determine the total contribution to profits and fixed costs from the solution generated in Part (a).
Elucidate how much would the industry save by raising all of the debt now, in a single issue, rather than in three separate issues.
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
Illustrate what is the equilibrium number of video arcades. Show how you arrived at your answer.
Elucidate how that influences the marginal benefits and marginal. Costs associated with your decision to purchase a house.
Illustrate what are the values of public saving,national saving and private saving.
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