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Using appropriate model, illustrate the effect of an expansionary fiscal policy in an open economy operating in free exchange rate regime .Assume perfect capital mobility. What is the effect if the government uses monetary policy alternatively?
If an investor implemented a reverse cash also carry trade, what would the arbitrage profit be.
Why is a depreciation of a country currency not necessarily a bad thing? Why is a country's appreciation of its currency not necessarily a good thing?
The mayor also considers issuing pollution permits and establishing a market for these permits. Plant A is given an initial endowment of permits such that it must engage in 60 units of pollution abatement (reduction). Plant B is given an initial e..
Determine which of following independent projects should be selected for investment if $325,000 is available and the MARR is 10 percent per year
Carlton Corporation, a manufacturer of electronic equipment, determine the following relation between its marginal cost of production output:
Assume you are an economic consultant for a big company that produces and sells lollipops that are shaped like the faces of Hollywood celebrities.
The problem belongs to Economics and the problem is about a report on the 2008 National Trade Estimate Report on Foreign Trade Barriers on specific country.
All of the following would cause the aggregate demand curve to shift EXCEPT a) improving levels of prosperity in other countries. b) a decrease in the price level. c) a deterioration of overall consumer confidence. d) an improvement in overall con..
Explain briefly why capital is the fixed factor in the short run, and not labor.
The market for toasters is a competitive market. Suppose that the quantity of toasters supplied per year depends as follows on the price of a toaster:On a piece of graph paper, plot the supply curve for toasters. How does the quantity supplied of toa..
What is the cost to a firm in an oligopoly that fails to take rivals’ actions into account? Suppose the firm operates along demand curve D1, shown below, as if no firms will follow its lead in price cuts or price rises. In fact, however, other firms ..
Realizing that the major function of benefit is to allocate resources according to consumer preferences, why are some groups in United States extremely critical of companies that earn increasing benefits
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