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Recently, there has been substantial pressure on China from the U.S. government to allow the value of the yuan to decrease relative to the U.S. dollar. Why might the U.S. government want this change in the value of the yuan? How would such a change affect the relative price of Chinese goods versus U.S. goods? how would it affect the value of U.S. liabilities owned by Chinese residents?
If there is initially a federal budget surplus, and government purchases and transfer payments both fall:
The Australian dollar continued to rise by another 20 percent against the U.S. dollar in between 2010 and 2012. How would this have affected Billabong? Is there anything that Billabong might have done to limit its long-term economic exposure to chang..
Consider the example presented in Figure 13-3. Imagine that the current price of waste disposal is $0.025/lb and the average waste disposal is 2.40 lb/p/d. As noted in the diagram, when the price was previously $0.01/lb, the average waste disposal wa..
One explanation about rights is that there is a difference between what we have the right to do and what is the right thing to do Explain what you think is meant by this statement
In a market society, collective behavior determines the levels of incentives (or prices).' Explain, using diagram, the way in which prices are achieved in the market. In the diagram also show the consumer and producer surplus. Using the concept of co..
q.suppose when russia opens to trade which introduced automobiles a capital-intensive good.a. according to the
Suppose we pursued a policy that made it more difficult for firms to fire their workers (e.g. mandatory severance packages, long notice time, burdensome paperwork, or prior government approval). What do you imagine will happen to the natural unemploy..
Challenge of any merger that raises the HHI by 100+ points in a market where the HHI is above 1800 before the merger.
A firm has a production function defined as y = 40L1/10K7/10. The firm faces costs of $10 wages, and $100 rental rate of capital. Find the cost function, and average total cost, average variable cost, and marginal cost functions.
Price Quantity Demanded $200 1000 $150 1400 $100 1800 If price falls from $150 to $100, Arrows representing the price and quantity effects both point down. An arrow representing the price effect points down and is shorter than an arrow for the quanti..
The political independence of central banks is an increasingly important issue in the global economy. What is the global trend in the political independence of central banks? Is this good or bad for the global economy? Explain with examples.
1. Less-developed nations sometimes argue that the industrialized nations' tariff structures discourage the less-developed nations from undergoing industrialization. How? Distinguish between consumer surplus and producer surplus. How do these concept..
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