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Given the spot exchange rate of 0.76 $/£, and the one-year forward rate of 0.67 $/£, and given that the current interest rate in Canada is 10%, what would you expect current interest rate to be in Britain?
John is buying some wood from Michael at a price of $50. He needs to build warehouse to put them in. He has two options: (i) build a high quality warehouse at a cost of $100; or (ii) build a simple warehouse at a cost of $50. If there is no rule that..
If the actual budget deficit is $100 billion, the economy is operating $250 billion above its potential, and the marginal tax rate is 20 percent
A large majority of Medicaid recipients
Your company manufactures controllers used in the production of commercial air conditioning units. Your current price is $50 per controller. At that price the total quantity demanded is 4,000 spread over a large number of small customers. Would you r..
9.every year management and labour negotiate a new employment contract by sending their proposals to an arbitrator who
Blood glucose measures the amount of sugar in the blood. Below are the readings for February for a person recently diagnosed with Type 2 diabetes.
Use the market for loanable funds to explain what happens to 1) private savings (PS) 2) private investment spending (PI) and 3) the interest rate (r) if each of the following events occur: The government decides to invade and occupy a Middle Eastern ..
What is meant by the Consumption Possibilities of a country? How are Consumption Possibilities related to Production Possibilities in a closed economy? In an open economy?
Suppose that the city of Cool currently levies a property tax for public safety at a rate of one percent of taxable value on a base of $10 million of taxable property. If the price elasticity of demand for public safety in Cool is -0.2, calculate and..
Suppose years of schooling, s, is the only variable that affects earnings. The equations for the weekly salaries of male and female workers are given by: What is the average male-female wage differential in the labor market? How much of this wage dif..
DeVito Company operates in a state where corporate taxes and workmen's compensation insurance rates have recently doubled. DeVito's president has assigned you the task of preparing an economic analysis and making a recommendation about whether to mov..
Economists argue about the potential benefits and cost of diversification. For example while diversification can certainly help company to promote new products at the same time through the merger of two firms it can be more expansive to develop commu..
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