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1. Classify each of the following as debits or credits in the U.S. balance of payments. Americans buy chocolate from the Swiss. U.S. gives foreign aid to Bosnia. British investors purchase U.S. government bonds American tourists travel to Australia Volkswagen earns profits in the United States from its new cars Toyota builds a new plant in Ohio Capital Records sells rock and roll music in Sweden
2. What will happen to a country that fixes the price of foreign exchange below equilibrium?
Suppose you bought a concert ticket from Ticketmaster for $50, but when you got to the concert scalpers (individuals who re-sell tickets at the event) were selling tickets in the same seating area as yours for $25. What is probably true?
Suppose Humphrey starts out with four pounds of food and seven gallons of water, while Lauren starts out with eight pounds of food and five gallons of water. Draw an Edgeworth box that shows all possible allocations of these goods, and plot the endow..
A consumer’s income in the current period is y=100, and income in the future period is y’=120. He or she pays lump-sum taxes t=20 in the current period and t’=10 in the future period. The real interest rate is 0.1 or 10% per period. Compute the consu..
Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
We have a bond issue currently outstanding that has 25 years left to maturity.the coupon rate is 9% and coupon are paid semi annually.the bond is currently selling for $908.72 per $1000 bond what is the cost of debt
Elucidate what is michelle's opportunity price of producing 200 potatoes in a year. what is michelle's cost of producing 50 chickens in a year.
Describe the central philosophical assumptions behind Reaganomics. What were the key policies by which it was implemented? To what extent were these policies a break with previous economic approaches?
Suppose a politician claims that "Since +I+G+NX, we should protect exporters in order to stimulate GDP". Is she correct? Why or why not?
Which of the following is a category of fiscal policy?
Eggebeen et al. (2010) found that men who at some point in their lives as fathers are more likely to have altruistic social relationships and be involved in community service organizations. The result was reported in the popular press (Jacobs 2009) a..
What is the difference between a free trade agreement and a preferential trade agreement? What is the difference between a free trade area and a free trade agreement?
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