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a. Explain how a budget deficit might lead to an appreciating currency and a trade deficit. (use foreign exchange market diagram in answer)
b. Explain the introduction of the foreign sector makes the fiscal policy tool of the budget deficit less effective in stimulating the open, as compared to the closed, economy. (Use AD/AS model diagram in answer)
c. According to economists, what is (are) the true cost (s) of a budget deficit. Does the "Opening up" of an economy change the type of costs a deficit produces? (Use investment/savings model to answer)
Elucidate what data or other factors that monetary policy makers, firms, and workers might analyze in attempting to determine if the decline in the real exchange rate is temporary or will persist.
Adding four or more flights to existing routes, it will have to add two pilots also flight attendants.
In general, correcting income distribution data for taxes and transfer payments results in:
Why do you think the compensation plan differ at the two firms. In particular why do you think Kaufmann s pays commission to salespeople, while Parkleigh does not.
Indicate whether each of the following is counted in this year’s GDP: You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an “Investing for Dummies” book at Barnes and Noble. Your physical therapist receives $300 ..
Suppose you have three indivisible assets, A, B and C with internal rates of return 2%, 5% and 10% respectively and initial costs of $1, $4, $5. Suppose you have $8.0 at 1% and can borrow at 9%. What is the incremental cost of funds on asset B?
Suddenly, 20,000 people immigrate from abroad and initially settle in the West. Elucidate why they possess the same skills as the native residents and also supply their labor inelastically.
If you were the angel investor, what is your certainty equivalent for these two projects? Are you risk averse, risk-neutral, or risk-lover.
Explain whether or not you believe modern media is an effective check on government action.
Suppose that the market demand curve for bean sprouts is P=880-2Q, where P is the price and Q is total industry output. Suppose that the industry has two firms, a Stackleberg leader and a follower. Each firm has a constant marginal cost of $80 per un..
Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Define price discrimination. Describe a price di..
The opportunity cost of a new public highway is the:
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