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1. Our model takes the price level P as given in the short run, but in reality the currency appreciation caused by a permanent fiscal expansion might cause P to fall a bit by lowering some import prices. If P can fall slightly as a result of a permanent fiscal ex- pansion, is it still true that there are no output effects? (As above, assume an initial long-run equilibrium.)
2- Suppose that interest parity does not hold exactly, but that the true relationship is R = R* + (Ee - E)/E + r, where r is a term measuring the differential riskiness of domestic versus foreign deposits. Suppose a permanent rise in domestic government spending, by creating the prospect of future government deficits, also raises r, that is, makes domestic currency deposits more risky. Evaluate the policy's output effects in this situation.
Elucidate why does the Fed like to fight inflation in our economy and is inflation a concern right now given our current economic situation.
If the demand elasticity for a product is -2, and a profit-maximizing company sells the product for $10, determine its marginal cost?
Explain how is Brazil affected, explain how does the size of this effect depend on the volume of trade between Brazil and the United States.
An entrepreneur plans to convert a building she owns into a video-game arcade. Her main decision is how many games to purchase for the arcade.
how percapita income fiscal policy laws local economies and census data affect the ability to fund governmental functions.
Williams and Westrich stock is currently selling for $15.25 per share, and the dividend is expected to continue.
Vulnerability Analysis
Determine what factors might contribute to a low level of productivity in an economy and compare these to rapid productivity growth experienced through the US during the 1990s.
What are the firm's fixed costs? What is the firm's marginal cost? Now suppose other firms in the market sell the product at a price of $10.
Give a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.
Determine the price elasticity of demand for a resource. Why is it important and what is it used for.
Construct a table shoeing Grey's marginal sales per day in each state. Calculate Grey's maximum monthly commission income.
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