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From January 1 to September 1, 2008, the Federal Reserve pushed down its target for the federal funds rate by 225 basis points. During this same period, the Hong Kong Monetary Authority also pushed down its interest rate target by 225 basis points. On the other hand, other central banks in emerging Asia- including the central banks of South Korea, India, Taiwan, Indonesia, Thailand, and the Philippines-all pushed up their interest rate targets.
Now consider the other central banks in emerging Asia, that is, those other than Hong Kong. With the help of a graph of the foreign exchange market, explain the effect of their monetary policies on the exchange rate, where e represents the US dollar price of an index of emerging Asia currencies.
What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?
A profit-maximizing monopolist never produces in the inelastic part of a linear demand curve. The short-run supply curve of a competitive firm is its MC curve.
Describe the Soviet Rapid Development Model
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
Provide brief but theoretically sound explanation for each of the following.
The public tends to view trade deficits with alarm while macoreconomics claims that trade deficits can actually be usefull for the economy. Discuss the macroeconomists position on trade defilicts
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Shelly's preferences for consumption and leisure can be expressed as. This utility function implies that shelly's marginal utility of leisure is C-200 and her marginal utility of consumption is L-80.
This document shows evaluation of alternative approaches to analysing the effectiveness of public policy and Assess the impact of government policies on selected areas.
Let the market demand for rye bread be given by Q = 500 + I - 250P rye + 400P wheat , where Q is monthly demand in number of loaves, I is average monthly income in dollars
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
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