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The “net exports effect” is the impact on a country’s total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an economic expansion:
The balance of payments
The rate of interest
The value of the dollar
In your answer, also discuss the case in the context of both a flexible exchange rate and a fixed exchange rate.
Show the effect of moving to a consumption tax on the loan able funds market if people react favourably to the incentive to save. Choose which curve or curves you believe are affected.
Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates.
Illustrate what methods does Rakuten use to make it easy for a small or medium size business to use its shopping platform.
SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in United State.
On the planet Omicron Persei 8, government spending is $1000, net taxes are $1200, and planned investment is $1400. Consumers spend according to the equation C = 100 + 0.8Yd, where Yd represents disposable income.
The question asked that assume that the aggregate demand curve.
Now suppose this game is to be played an unknown number of times. Both firms know that there is a probability .1 that the current play of the game will be the last time the game will be played. So there is a probability 1.0 that the game will be p..
Elucidate is the fiscal policy expansionary or contractionary.
What are two or three methods currently being used to encourage economic growth for the typical company in Hong Kong and typical company in Singapore?
California Electric has a cost of equity capital of 16%. The company has consistently been authorized a return on equity capital below this expenses.
If the annual interest rate is constant at 12 percent, how much must be deposited monthly between ages 23 and 60 for you to receive your $6,000/month for 25 years.assume monthly compounding throughout.
Prove that if Wi* = \(\lambda1+\lambda2Wi\) then the new intercept b1* = \(\lambda1+\lambda2b1\) where b1 is the intercept of the original regression of W on H. Explain how the standard error of the slope coefficient in (h) is..
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