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1. Explain why the real exchange rate never changes under the theory of purchasing power parity?2. What governs the behavior of nominal exchange rates under PPP?3. Suppose that inflation in the US is 4% while in the rest of the world it is 7%. Under PPP, how does E change over time? Does the dollar appreciate or depreciate?
Draw a set of indifference curves for Jones, and second set for Smith, with alcoholic drinks on vertical axis and non-alcoholic on the horizontal axis.
Last year, Urbana Corporation had $197,500 of assets, $307,500 of sales, $19,575 of net income, and a debt-to-total assets ratio of 37.5 percent.
The cenima manager observes that the increase in price causes attendance at a given movie to fall from 300 persons to 200 persons.
Using the Keynesian cross model, draw a graph to illustrate and explain what will happen in an economy when planned aggregate expenditures are greater than real GDP (i.e., A.E. > Y). How is equilibrium achieved in this economy?
Expected changes in the U.S. real exchange rate vis-a-vis Switzerland and expected rates of inflation in the U.S. and Switzerland.
Asume that an individuals inverse demand for wireless services in the greater Atlanta.
Why is representative money more useful than commodity money. representative money has value because the government says it does or else.
A group of college students were given a short course in speed-reading. The instructor was curious if a monetary incentive would influence performance on a reading test taken at the end of the course. Half the students were offered $5 for obtainin..
Determine what did classical economists suppose about flexibility of values, wages, and interest rates and what disagreements did Keynes have with classical economists?
Explain why would you expect inflation rate to accelerate if actual unemployment rate declined to a level lower than the "full employment" unemployment rate & remained at that low level for a year or longer and creaste and AS/AD diagram
Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run.
the amount that they can enjoy in the future Why can't people enjoy more of both How does saving relate to investment and thus to economic growth What role do banks and other financial institutions play in aiding the growth process
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