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For each of the following situations, use the IS-LM-FX model to illustrate the effects of the shock and the policy response. For each case, state the e§ect of the shock on the following variables (increase, decrease, no change, or ambiguous): Y, i, E, C, I, and TB. Assume the government allows the exchange rate to áoat and makes no policy response. To get full credit each of your answers must be supported by the appropriate IS-LM-FX graphs.
1. Foreign output decreases.
2. Investors expect a depreciation of the home currency.
3. Government spending increases.
La, who lost his human resources job at Wall Street firm Goldman Sachs in November, had prepared his spiel. The Hoboken, New Jersey, resident told the recruiter how he could help reevaluate the brokerage's call centers to be more efficient.
According to your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new companies:
Tokyo's streets are characterized by a plethora of vending machines-dispensing everything from soft drinks, candy bars, and cigarettes to magazines, personal toiletries and beer. Unlike other major cities such as New York and London.
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