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For at least 25 years following 1981, the Chinese government followed a policy that kept its currency weak and the U.S. dollar strong. Explain how this policy hurts Chinese consumers. Why does the Chinese government continue to support a strong dollar, despite harm to its consumers?
The European Central Bank (ECB) has been known for setting strict inflation targets (in other words, the monetary policy has been oriented towards maintain price stability).
Snow peak Ski Resort offers a price for a lift ticket that is barely over its marginal cost, but the high equipment rental fee keeps generating big profits. Which pricing strategy is the management using?
Changes in tax laws and deliberate government purchases that are made to help the economy recover from a recession are known as ____________.
Assuming that your opportunity cost funds interest rate is 5% which refrigerator would you buy and why.
Mention three businesses that you are familiar with or that you have dealt with recently. Decide on which market structure that these businesses fit – perfect competition, monopolistic competition, oligopoly, or monopoly. What characteristics were mo..
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
In August 2008, Mexican Pesos ere trading at $0.10 on the foreign exchange market. By November, they were down to $0.07, a decline of 30%. Explain the fall in the price of a Peso using supply and demand curves. In words, explain the rise in the price..
It seems that bounded rationality models focus on explaining a particular psychological bias, in a very specific way. In particular, its seems that the state of the art consensus is that one size does not fit all. The prevalence of framing effects ma..
If a bank has $100 million in deposits and $16 million in reserves with a reserve requirement of 0.15,
Describe an example of consumer's causing a product to succeed or fail based on their purchases or lack thereof.
Consider a market with two firms, each with constant marginal cost of $100 and facing a market demand curve of P=1000 - Q where W is total output of the two firms. Suppose they choose simultaneously, what is the Cournot Nash Equilibrium for this situ..
Given the demand curve P= 2,000 – 2Q and marginal costs of MC = 1,100 + 2Q, the firm’s profit will maximize at equilibrium price and output of: Based on the demand and cost function in previous question, in a two-part tariff pricing strategy, what is..
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