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The exchange rate and the labor market
Suppose the domestic currency depreciates (E falls).
Assume that P and P * remain constant.
a. How does the nominal depreciation affect the relative price of domestic goods (i.e., the real exchange rate)? Given your answer, what effect would a nominal deprecia- tion likely have on (world) demand for domestic goods? on the domestic unemployment rate?
b. Given the foreign price level, P *, what is the price of foreign goods in terms of domestic currency? How does a nominal depreciation affect the price of foreign goods in terms of domestic currency? How does a nominal depre- ciation affect the domestic consumer price index? (Hint: Remember that domestic consumers buy foreign goods (imports) as well as domestic goods.)
c. If the nominal wage remains constant, how does a nomi- nal depreciation affect the real wage?
d. Comment on the following statement. "A depreciating cur- rency puts domestic labor on sale."
assuming that the fed judges inflation to be the most significant problem in the economy and that it wishes to employ all of its policy instruments except intrest on reserves, what should the fed do with its three policies.
Civil Procedure and Constitutional Law
Analyze the impact of the selected domestic issue to the economy and suggest how the negative impact of the issue can be minimized. Provide support for your rationale.
you have been hired as a consultant by your mayor to evaluate the increase in aggregate demand in the city where you
The weight of Labrador Retrievers is normally distributed with Mean 73 lbs and Standard Deviation 12 lbs. Shade in and calculate the probability that a randomly selected dog weighs less than 75 lbs.
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One additional advantage Microsoft has is its ability to create a variety of Vista products, some of which have more features than others. Does it make sense for Microsoft to differentiate its product into basic and ultimate Vista editions
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Want the duration of its assets to be greater than the duration of its liabilities - a positive duration gap.Want the duration of its assets to be greater than the duration of its liabilities - a negative duration gap.
1. b. in at least 3 detailed paragraphs answer the following three questions use examples to illustrate your response
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