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Suppose that the Untied States decides to subsidize the export of U.S. agricultural products, but it does not increase taxes or decrease any other government spending to offset this expenditure. Using a three-panel diagram, show what happens to national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance. Also explain in words how this U.S. policy affects the amount of imports, exports, and net exports.
Imagine that Guatemala (which borders Mexico to the southwest) has been invited to join NAFTA. Discuss the most likely static and dynamic effects on both Guatemala and the U.S.
On Friday, New York foreign currency market closed with a quote of $1.0900 per Euro. To stimulate economic activity the Federal Reserve hints that interest rates will be lowered by fifty basis points
Suppose the many provisions in RCRA that discourage land based waste disposal. Recognize and describe one aspect of the law that is command and control in approach and one that is incentive based.
The Internet has permitted for raised trade in services such as programming and technical support, a development that has reduced the prices of such services relative to manufactured goods.
Assume that 2-people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and increase chickens.
Does either country have absolute or comparative advantage in any item? Give support for your answer through computing the "resource costs" or opportunity costs for both products in both countries.
Draw the production possibility frontiers for Germany and what are the autarky relative prices of airplanes (P A /P C ) in Germany and Japan?
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in ..
Mary Beth Morgan and Shaban Shoshi are currency traders for Mercury Forex Corporation They have compiled the following data concerning currencies in Sweden, New Zealand, and United States.
Determine what evidence do we have that the Central Limit Theorem is true and explain why do so many of life's events share the same characteristics with Central Limit Theorem?
Explain a real life situation of a company having type monopoly power that is not due to government regulation. Find the source of their monopoly power and how do they exploit it?
If American consumers decrease their spending on imports but leave their overall consumption spending constant, "hence buying more locally made goods", with all other factors constant what would happen to America's current Account and why ?
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