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Derive the formulas for Purchasing power parity and Interest rate Parity in relative form. Suppose that the return on domestic bonds held by foreigners in country i are subsidized at the rate s and that returns on domestic bonds held by residents of country j are taxed at the rate ?
Kim deposits her annual bonus into a saving account that pays 8% interest compounded annually. The size of her bonus increases by $2,000 each year, and the initial bonus amount is $5,000. Determine how much will be in the account immediately after th..
If the indurtry can pay only one of the six salary levels shown, which should it choose? How many workers will it employ?
Determine what impact will an unanticipated rasie in the money supply have on the real interest price, real output, and employment in the short run?
Assume the market demand curve in an industry is characterized by P=1-Q, where P is the market price and Q is the total quantity supplied to the market. Assume there are three firms in this industry.
1.)What major business cycle facts does the RBC theory explain successfully? Does it explain any business cycle facts less well? 2.)How would governmental expansionary policy affect the economy according to both theories (classical and Keynesian)? ..
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Describe your answers.
With the help of an AD-AS diagram, explain the effect on the price level and real GDP. Use an upward sloping AS curve and be clear about the interconnections among markets.
What do you think large corporations like Microsoft and WalMart should be regulated more or less than they are.
Although he was a prolific artist, Pablo Picasso painted only 1,000 canvases during his "blue period." Picasso is now dead, and all of his Blue Period works are currently on display in museums and private galleries throughout Europe and the United..
Draw a indifference curve and degree of substition betweem goods: When the two goods are imperfect substitudes for each other, and assuming diminshing marginal rate of substitution.
The New York Times reports that Wal-Mart has decided to challenge Netflix and enter the online DVD by mail market. Because of economies of scale, Wal-Mart has a slight cost advantage relative to Netflix. Wal-Mart is considering the use of a limite..
Describe the implications of this economic forecast and the income elasticity of demand for the pricing strategy.
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