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Consider a country that is operating with a fixed exchange rate under conditions of perfect mobility.
a. Explain what effects you would expect an in increase in world interest rates to have on the equilibrium values of the following domestic macroeconomic variables in such an economy, assuming no domestic policy response: the level of real GDP, the domestic interest rate, the current and non reserve financial of the balance of payments, and the central bank's stock of foreign exchange reserves.
b. Describe two policy responses that the domestic economy could implement to restore the original level of real GDP, and show how they would work.
q. a facility for a production plant can be purchased for 155000 with a down payment of 25000. consider the following
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..
Apple has had some success in unseating Windows, or at least reducing its market share. Select the top two strategies, in order, that you believe have contributed to this success.
Why does an individual's demand curve normally slope down. Why does a market demand curve normally slope down. Why does a firm's supply curve normally slope up. Why does a market supply curve normally slope up.
Your final project will require you to examine any foreign currency of your choice (preferably one from an emerging market), and provide an analysis of that currency against the U.S. dollar over the 5-year period ending with 2010
The Acme bag company manufactures and sells bags using paper and labor. Currently workers are paid $6 per hour and paper costs $20 per ton. Acme’s current total costs of production are $200,000 per day. Write an equation for, and illustrate on a gra..
How does this relate to idea that diminishing marginal utility must be understood in context? Many people buy too much on their credit cards, even though they knows they will be sorry when y get their bill. Relate this fact to idea of time inconsi..
explain why a $100 billion increase in govermant purchases of goods and services will lead to a large increase in aggregate deamnd than a $100 billion decrease in taxes?
Elucidate why an upward sloping aggregate supply curve is thought to weaken the impact of a rightward shift of the aggregate demand curve generated by an increase in government spending in the short run.
q. 1. what is the base year used to calculate the official consumer price index?2. what was the consumer price index in
Assume a central bank does not satisfy the Taylor principle. Use a graph to analyze the impact of a supply shock.
Suppose a Japanese company discovers a way to split its production process for televisions into two tasks: component production and assembly, and assembly can be offshored to Indonesia. Together, 0.8 units of production labor and 0.2 units of assembl..
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