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For many years the Argentinean peso was pegged to the U.S. dollar. Using the IS-LM-FX model for Home (Argentina) and Foreign (US dollar), illustrate how an increase in taxes in Argentina affected the following variables in Argentina (increase, decrease, no change, or ambiguous): Y, i, E, C, I, TB. Do not forget to use a diagram to support your answer.
Harper Engine Company needs $600,000 to take a cash discount of 1.5/10, net 60. Abanker will loan the money for 50 daya at an interest cost of $12,100. What is the effective rate on the bank loan? How much would it cost (in perecentage terms) if Harp..
Using the Mundell-Fleming model (ISLM with IPR), discuss the impact of a negative aggregate demand shock (e.g., negative shock to investor or consumer confidence) on equilibrium values of output, the interest rate, the exchange rate, next exports, an..
Give an example of behavior that cannot be explained with standard economic models, and which is therefore of interest to behavioral economists. Be sure to identify (i) which standard economic assumption is violated and (ii) how do behavioral economi..
Graphically, the reservation wage is shown by:
In the summer of 2010, Congress passed a far-reaching financial reform to prevent another financial crisis like the one experienced in 2008-2009. Consider the following possibilities: Show the consequences of the policy in this situation on a new gra..
Joe and Jim purchase vegetables at a grocery store, but Jim also grows vegetables in his back yard. Regarding these two practices, which of the following statements is correct?
Erin makes 800 items a day. Each day she spends 8 hours producing those items. If hired elsewhere she could have earned $300 an hour. The item sells for $20 each. Production occurs seven days a week. If the explicit costs total $200,000 per month,..
Develop a Process Map of a flow processes that pertains to a Glass Company. The Glass Company produces window and doors for a residential customers. What is the customer benefit package (CBP) your business offers?
Provide one quote and its context for both a positive and normative statement. Explain your choices. Estimate the statement choices of your fellow students.
How do these experiments explain why England wanted to tax trade in the American colonies; which led to rebellion and the formation of the United States
What are the effects of increasing in government spending both mandatory and discretionary spending on US economy forecast ot grow by 1.5%
How to calculate supply and demand using surveys and statistical methods; changes in the supply and demand framework that have impacted the healthcare market; changes in supply and demand curves including graphical representations of such changes; an..
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