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Government fiscal policy and international trade seem to be linked. Let’s investigate their relationship.
A. Say a government is currently running a budget deficit and decides to cut taxes, increase spending, or both. Explain how this will affect interest rates in the country.
B. Given the change in interest rates from part A, what will happen to the value of this country's currency? Explain why.
C. Given the change in the value of the country's currency from part B, how will the price of the country's goods relative to other countries' goods change? What effect will this have on its current account?
D. What effect will all this have on the country's capital account, and how will this work to keep the balance of payments equal to zero?
Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interes..
The basic difference between explicit and implicit costs is
q.to keep gasoline expenses edith as well as mathew agreed to carpool jointly for traveling to as well as from work.
One way to help establish new technologies is to employ something called a "quality circle". What is this and how do companies use them to help implement new technologies and stay on top of changes in the work environment?
Elucidate why the general level of wages is higher in the United States and other industrially advanced countries.
As the baby boom generation begins to reach retirement age and the increase in the life expectancy in the US, people will be receiving Social Security payments for a longer period of time. In your opinion, what should the government do to handle this..
Specialization and Exchange. Please select one item that you can see from where you are sitting right now – and list and describe as many people as you can think of that played a role in getting that item to where it is right now. (One Limit Only: yo..
Create a table that lists at least four sources of growth in the economy along with two examples of each source. A brief caption should accompany your table, explaining what it contains and why these sources are important.
The firms cost functions are given by the following functional form: C(qi)=ciqi, where i=1,2. Under this functional form, the firms marginal cost equals its average cost. Discuss each firm’s best-response function when the firms compete by choosing p..
Suppose that in Year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. The value of nominal ..
Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys. Illustrate Santa’s effect on consumer’s surplus and the producer surplus earned by commercial toy manuf..
Did you know that many large countries utilize a national sales tax, or value added tax, to raise revenues? What if, -in an effort to FIX THE ECONOMY, the U.S. decided to do this? What other countries are doing this and to what degree of success?
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