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Suppose that Australia and New Zealand have agreed to create a currency union with a new single currency called ANZAC (and sacrifice their own domestic currency). Assuming that this decision is irreversible, discuss the policy implications. You may discuss from a single country's point of view (either Australia or New Zealand). You must also address briefly any social and/or cultural factors and their implications.
At times, the Federal Reserve tries to change inflationary expectations. Why would the Fed want to raise inflationary expectations? How would this strategy of raising inflationary expectations affect consumption and investment? Be sure to tie your an..
Oskar's preferences over gambles in which the probability of events 1 and 2 are both 1/2 can be represented by the von Neuman-Morgenstern utility function 0.5x5 + 0.5y5 where x is his consumption if event 1 happens and y is his consumption if event 2..
1. The population of the world in 2003 was 6.314 billion. It grew between 1975 and 2003 at an annual rate of 1.6%. Assume that it continues to grow at this rate. a. Compute the doubling time. (Understand the Rule of 72)
Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146.70 points Friday to close at 11,893.69.
A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.
In this discussion question, describe the Pros and Cons of some video editing software that you have used for would like to use. If you use sources outside your text, please provide where you received the information.
Interest rate parity suggests that the difference in interest rates between two countries affects the change in exchange rates over time. While not a perfect predictor, it has been shown to be an unbiased predictor and has more explanatory power than..
In each of the following, give an example of tax expenditures and conventional expenditures. Explain how the same results could be obtained by converting the tax expenditure into a conventional expenditure.. Medicine, housing, education.
Assume that the market for wheat is perfect competitive, with demand curve P = 5000 ? 0.01QD and a supply curve P = 1+0.1QS. Each identical wheat producer has a total cost curve given by TC = 1+Q+Q2 , which results in marginal cost of MC = 1+2Q. What..
Anti-trust Measures. Identify a particular market that has experienced government anti-trust efforts or you think should have antitrust efforts. Analyze what type of market structure was in existence at the time of the anti-trust measures or is in cu..
After watching the Seinfeld video clip (rent control), discuss how some consumers are made better off and some are not in a rent-control situation.
Illustrate what would happen to the total employment, the size of the labor force, and the unemployment rate? Show the results graphically.
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