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Exchange rate and BOP relationship. What happens in the case: Current account deficit of $500 billion, financial account surplus of $300 billion? Ignoring statistical discrepancy, Show in words and a graph what will happen in the following two cases?
1) The exchange rate system if flexible where market supply and demand determines exchange rate.
2) The system is fixed exchange rate system. What should the Central Bank do to restore the balance of payment?
Consider a production function of three inputs, labour, capital and materials, given by Q = LKM. Let w = 5, r = 1, and m = 2, where m is the price per unit of materials.
What price will consumers pay after the tax is levied and what proportion of the tax will be paid by the suppliers of Martin guitars?
Illustrate the above relationship between income and savings rate using a graph with income on the x-axis and total savings on the y-axis. B). Will a government policy to redistribute income to achieve less income inequality potentially help or hurt ..
price nbsp nbsp nbsp nbsp nbspnbsp quantity
Which of the following methods is used by unions to increase the demand for the labor of its members? what is an agreement between a manufacturer and a distributor on the price at which a product will be resold.
Suppose that the market demand-and-supply curves for the gasoline market are given below. In each case, quantity refers to millions of liters of gasoline/month: Qd is the quantity demanded; Qs is the quantity supplied; p is the price per liter (in ce..
Apply the micro and macro for or against black markets
Effects of wage stickiness and the shape of the aggrate supple curve,effect of expectations on aggragate demand. Phillips Curve, natiral rate of unemployment, expacted inflation , the relationshipe between AS-Ad and the Phillipe Curve.
use the phillips curve to describe the tradeoffs between inflation and the unemployment rate both in the short-run and
In the monopolistic competition model, would you expect prices to be higher or lower as the number of firm increases? Briefly explain why.
Wendy's narrowed the vanillas to two varieties and brought more than 100 consumer testers into stark white tasting booths at its head headquarters. The testers were told to take at least three bites of each sample before deciding which they prefer..
define inflation. assume that you live in a simple economy in which only three goods are produced and traded fish fruit
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