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Macro DQ
The Net Exports Effect
The "net exports effect" is the impact on a country's total spending caused by an inverse relationship between the price level and the net exports of an economy. Using this principle, discuss how the following economic variables change during an economic expansion:
o The balance of paymentso The rate of interesto The value of the dollar
In your answer, also discuss the case in the context of both a flexible exchange rate and a fixed exchange rate.
Now suppose that policy makers like to increase national income. Which of expansionary fiscal policy and expansionary monetary policy is more effective to achieve the policy goal? Explain with the IS-LM model.
Share your definition of globalizaion and whether or not it has more merits or demerits. Discuss, for example, how it benefits developing nations-
George owns 1,000 shares of ABC common stock and 3,000 shares of Brightstar mutual fund. George elects to participate in Brightstar's dividend reinvestment plan, reinvesting his annual dividends and capital gains distributions
What is the country's unemployment rate? How does it compare to the United States' unemployment rate? Are they better off or worse off than us?
If hotel management decides to price-discriminate in a manner that maximizes profit, what will be the marginal revenue in each of the market segments, A and B?
Discuss 6 of the most important advances in military technology during the 19th, 20th and 21st centuries (2 per century). Why was each important? Which of these advances originated in the United States?
explain whether the following scenarios shift the aggregate supply or aggregate demand curves. illustrate what happens
What is a government budget deficit How does a federal budget deficit affect the economy How does it affect the level of investment and interest rates How does it affect the individual consume
In at least one well-developed paragraph, explain how many sneakers and video games are produced at each of the five points on the graph. Then in at least one additional, well-developed paragraph, analyze how the graph can show efficiency, growth,..
What do you refer to the combination of two or more firms competing in the same market with the same commodities?
Time inconsistencies (based on Barro-Gordon (1983), "Rules, Discretion, and Reputation in a Model of Monetary Policy", Journal of Monetary Economics, 12:101-121) Assume that the preferences of the benevolent policy maker can be represented through..
Suppose that the government levies a $1.50 tax on a chocolate bar. What is the change in the quantity of chocolate bars bought, who pays most of the tax, and what is the deadweight loss?
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