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1)Compare and contrast the effect of an increase in Foreign interest rates on Home's economy under fixed and floating exchange rate regimes. Use the IS-LM-FX model for each case (flexible and fixed exchange rates)
2)Why might a country with a fixed exchange rate contemplate capital controls?
Explain how are the Bank of Canada's transactions in the foreign exchange market from part (a) reflected in the balance of payments account.
A monopoly is manufacturing a level of output at which price is $80, marginal revenue is $40, average total expenses is $100, marginal cost is $40and average fixed cost is $10.
Locate an article pertaining to a change in the supply, demand, and pricing of a particular product or service. Utilizing the economic theories, prepare a paper in which you summarize the article and elucidate why changes made in supply, demand, a..
Capital budgeting projects comprise all of the following with the exception. Asymmetric information represents a market situation.
If average variable prices are assumed to remain constant over a 10 percent increase in output, elucidate the effects of the proposed price cut on total profits.
What do you think the increase in productivity is likely to move the economy closer to full-employment or farther away.
For decr returns to scale, if a firm hires double the amount of managers and also doubles all other input, the managers may not be able to manage their tasks at hand because of how difficult the company has become to handle. Therefore output will ..
hannah and her employer both expected inflation to be 3% between 2010 and 2011, so they agreed in a two year contract $12.00 an hour in 2010 and $12.36 per hour in 2011. However suppose inflation between 2010 and 2011 was only 2% not 3%.
Explain how can these limits to reimbursement be viewed as the exercise of monopsony power.
Now determine equilibrium quantity and graph the two equations to substantiate your answers and label these two graphs as Dl and SI.
Calculate the markup percentage also target selling price that will allow Bolus Computer Parts to earn its desired ROI of 25% on this new component.
Assume the economy is slumping into recession and needs a fiscal policy boost.
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