How does a budget deficit lead to an appreciating currency

Assignment Help Microeconomics
Reference no: EM13180699

a. How does a budget deficit lead to an appreciating currency and a trade dificit?

b. Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, economy.

Reference no: EM13180699

Questions Cloud

What is the maximum methylamine that can coexist : If the Ksp of Fe(OH)2 is 7.9 × 10-16, what is the maximum [Fe2+] that can coexist with these solutes in the solution?
What is the marginal cost per unit : A purely competitive firm finds that the market price for its product is $25.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $30.00 per unit for all successive units. Does price exceed aver..
Describe tpm-tqc and jit : Amazon's "autobot" recommended a book to an economist titled Quality maintenance: Zero Defects through Equipment Management. The book's description is "Achieve zero-defect product quality by eliminating the root causes of your equipment defects
What is the average total cost of production : Your firm operates three plants. The cost functions vary across the three plants. Plant A: Marginal Cost = 6Q Average Variable Cost = 3Q Average Fixed Cost =1000/Q Plant B: How much output should be produced at each plant?
How does a budget deficit lead to an appreciating currency : How does a budget deficit lead to an appreciating currency and a trade dificit? Explain how the introduction of the foreign sector makes the fiscal policy tool of budget deficit less effective in stimulating the open, as comapared to the closed, e..
What is the probability that they are identical : The notebookalso comes loaded with one of four different games. How many different combinations of colors and games are possible? If you were to order three different notebooks withoutstating preference on color or games, what is the probability t..
Determine the expected annual operating cost : A mining company plans to invest $50,000 in a project. The annual operating cost is expected to be $6,000, and the annual income is expected to be $22,000. THe salvage value will be $5,000 at the end of 5 year life.
Find the rate of return on a process : A packaging company needs to know the rate of return on a process which will cost $60,000, have an income of $25,000 per year, have an operating cost of $5,600 per year, and have a salvage value of $7,000 at the end of its five year life.
What price does the firm charge its customers : A has $1.5 million in sales, a Lerner index of 0.57 and a marginal cost of $50. The firm competes against 800 other firms in its relevant market a. What price does this firm charge its customers? b. What is the firm's markup factor? Wh..

Reviews

Write a Review

Microeconomics Questions & Answers

  How much should jason pay

Jason has been making equal annual payments of $7,500 to repay a college loan. He has just made an annual payment and now wants to pay off the rest of the loan immediately.

  Conduct an analysis of the demand

Conduct an analysis of the demand for the organization's product(s) and/or services - Discussing the source of your numerical price and other data

  Holistic view of student in terms of standardized assessment

Discuss why is it important to think that the holistic view of a student in terms of standardized assessment and how would the results of your interpretation effect educational decisions for the student?

  Characteristics of britain economic relationship with india

Discuss the characteristics of Great Britain's economic relationship with India in the 17th and 18th centuries? How would you describe their success in their competition with Dutch?

  Supply and demand diagrams

Describe each of the subsequent using supply and demand diagrams.

  Grant proposal assignment

Write a grant proposal aimed at receiving funding for a programme that you expect to run in anarea (village) of a developing country of your choice.

  Pricing strategies in monopolistic competition

Describe the pricing strategies in monopolistic competition, oligopoly, and monopoly market models. Explain which market structures are price makers and price takers. What is the difference in the demand curves and why.

  Write an assembly language subroutine

Write an assembly language subroutine

  Determine the reliability of the tires

Explain which bridges you would choose to attempt to use. (Assume you can put one foot on a bridge to see if it collapses before you attempt to cross.)

  Decreasing tax policies on electricity

Discuss how do reducing tax policies on electricity and imported luxury cars in short run affect firm revenue, consumer expenditure and government tax revenue?

  What are brand extensions

Are brand extensions an important brand-growth strategy or can they endanger brands? Perhaps start with a definition of brand extensions?

  Average productivity-marginal productivity

What is average productivity? What is marginal productivity? Explain the relationship between average and marginal productivity. What would happen to average and marginal productivity if a technological innovation were introduced to the production..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd