Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
i. To deal with the various challenges facing the U.S. economy, the FOMC has employed aggressive monetary policy. Ceteris paribus, show the effect on the USD/Euro exchange rate from this policy change. Use the left graph below. Provide an intuitive description below the graph. Also, comment on what impact this would have on the U.S. export-import situation vis-a-vis trading partners?
ii. Now, assume the ECB also employs comparably aggressive policy. Copy your results from the left graph and show on the right graph how the ECB could affect the USD/EUR exchange rate. After all this, will the dollar be weaker or stronger relative to E1? Provide an intuitive description below the graph.
iii. Where are current policy rates in the U.S. and Europe? Comment on how further active policy may fit into the current graphical setup given the state of current policy.
iv. Over the long-run, how would these policies affect inflation across the two regions if they became permanent? How would these policies affect long-run economic growth? One sentence for each is sufficient.
Give at least three explanations of why economic reasoning would argue that this is to be expected.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
When a recession is over, do people begin to immediately feel the effects of an efficient economy? Use the experience of the most recent recession to justify your answer.
Those who advocate that the Federal Reserve target monetary aggregates usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions
You have the following information concerning the production of wheat and cloth in the United States and the United Kingdom:
Answer the next three questions on the basis of the following production possibilies data for Francia and Galacia. All data are in tons.
For a perfectly competitive firm the price is $2 per unit. At this price the firm is producing and selling 10,000 units. It costs $1.50 to produce the last unit. Should the firm produce more? Less? Why?
Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.
Describe what effect an expansionary fiscal policy would've on the price level and real GDP starting from full employment equilibrium.
Which country is capital abundant according to the Heckscher-Ohlin theorem? Given your answer to (a), draw the PPF for Canada. Also draw the indifference curve and the relative price line for the no-trade equilibrium.
Is the economy of a big city more competitive than that in a small town or given neighborhood? How? Do you think your local grocer has monopoly power?
Engineers at national research laboratory built a prototype automobile which could be driven 180 miles on single gallon of unleaded gasoline. They estimated that in the mass production the care would cost 40k for each unit to build.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd