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Question1. An economy can be stimulated through printing more money. Determine the dangers of doing that? Inflation can be reduced by reducing the money supply. What is the potential downside?
Question2. The only thing backing up a nation's currency is faith in the government issuing it. If this is so, what should governments do to maintain a stable currency? What actions would undermine a currency?
Question3. A country that has never had its own currency has formed a central bank and put you in charge of developing money. It needs to perform the necessary functions of any good currency efficiently (i.e., being a medium of exchange, a store of value, and a unit of account). Since your country is interested in trading with other members of the global economy, other nations must have faith in its fitness and the currency exchange markets must be willing to accept it.
Determine what jobs are created through free trade and what jobs are lost when countries restrict free trade? Identify the areas in which U.S. applies protectionist policies.
Presidents, senators and members of congress came from a different backgrounds but all must decide upon a great many issues that involve macroeconomics.
The given table lists the stages needed in the production of a personal computer. Determine the value of the computer in the GDP?
Describe how does choice of an exchange rate regime alter conduct of monetary policy. In addition, please also explain when it tend to increase the power of the monetary authorities and when to decrease their power.
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
International Monetary Fund information indicate that, with 2000 = 100.0, Japan's export value index in 2006 was 95.3, its import price index in 2006 was 127.2,
Assume that both the stock market and housing prices fall in the United State 1st, describe the channels through which these shocks affect aggregate demand for goods and services.
China and Japan have 2factors of production, land and labor. Both countries produce 2-goods, corn, which needs more land, and computers, which needs more labor.
Discuss and explain why business and consumer expectations about the economy are more important when the Fed uses expansionary monetary policy then contractionary monetary policy.
Suppose that government imposed price ceiling on gasoline in order to prevent values from getting too high. Determine the economic implications of this action in the gasoline markets?
"The theory of the second best leaves welfare economists 'high and dry' since not only does it abolish the established objectives of first-best situations,
Suppose the following data, and answer the question below. China and England are international trade partners. The following information are expected payoffs for the two countries.
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