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1. What is the key difference that determines whether an international transaction appears in the current account or the capital account?
2. In a world with two large open economies, what determines the world real interest rate? What relationship between the current accounts of the two countries is satisfied when the world real interest rate is at its equilibrium value?
The production possibilities curves above show all the possible combinations of helicopters and scooters that two towns, Millerville and Jamestown, can create using equal amounts of resources.
A night-club owner has both student and adult consumers. The demand for drinks by a typical student is QS=24-4P. The demand for drinks by a typical adult is QA=8-P. There are equal numbers of students and adults. The marginal cost of each drink is $2..
Consider the market for taxi service in Washington, DC. Use demand-supply analysis to explain the effects (i.e., increase or decrease) on the equilibrium price and quantity from the following (considers each case separately; and assumes that only one..
What electoral system (i.e. Plurality-Majority or Proportional) is better for political representation?
A company is trying to predict the long-run market share of a new men's deodorant. Based on initial marketing studies, they believe that 35% of new purchasers in this market will ultimately try this brand. Develop a general model for predicting long-..
The most likely economic situation in which a government would implement contractionary fiscal policy is ... Which one of the following is a disruptive effect of high inflation on the economy? Fiscal policy refers to.
What items should be included in other comprehensive income?
q. assume that the feds inflation target is 2 percent potential output growth is 3.5 percent as well as velocity is a
Suppose that in country A the “bottom” 40% of the population receives 10% of the country’s income. The “top” 60% receives the remaining 90% of the country’s income. What is the Gini index in country A? Now suppose that in country B the bottom 20% of ..
In retrospect, it is clear that the U.S. economy was in a precarious position in 2006. Trillions of dollars had been borrowed to buy housing on the expectation that home prices would keep on rising. In 2006 the house prices fell; what happened in rel..
Assuming that no currency leakage occurs, how much will the bank be able to lend to its customers following the Fed's purchase?
In 2008, inward FDI accounted for some 63.7 percent of gross capital formation in Ireland, but only 4.1 percent in Japan (gross capital formation refers to investments in fixed assets such as factories, warehouses, and retail stores). What do you thi..
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