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Germany consumers have $50 in income "their gross domestice product". They spend $35 on consumer goods "$25 on Germany goods and $10 on imports", they save $8, and pay $7 in taxes. The government collects $7 in taxes and spends $10 on locally-made goods. Firms borrow $7 and make $7 in domestic investment spending. The government and firms buy no imports what is Germany's current account balance?
What is the current "macroeconomic situation" in the U.S.(e.g. is the economy currently concerned about unemployment, inflation, recession, etc) What fiscal and monetary policies would be appropriate at this time
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 th..
Points Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:
Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Corporation They have compiled the following data concerning currencies in Sweden, New Zealand, and United States.
Suppose that each US worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily.
question 1 a german company is investing millions in fdi to establish a manufacturing facility in the us and the us and
Traders in asset markets suddenly learn that the interest rate on dollars will decline in the near future. Use the diagrammatic analysis of this chapter to determine the effect on the current dollar/euro exchange rate, assuming current interest ra..
An economic analysis of an (Australian or overseas) industry and its component companies - A comparative study of trade restrictions in selected countries
Discuss the differences between the long run and the short run. What are the implications for the firm of making decisions in the short run and making decisions in the long run? Discuss the limitations and freedom of the two time horizons.
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.
1. the kingdom of tradia is a small open export-oriented country. suppose initially that the world price of stuff is
Mexico is a producer and exporter of crude oil. Since Mexico is a relatively small crude-oil producing country, its actions do not affect world prices; as an exporter, Mexico faces a foreign demand curve that is perfectly elastic at a price of $15..
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