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The Venezuelan bolivar has been steadily depreciating against the US dollar, but the government wishes to stop the depreciation. What must the Banco Central de Venezuela do to stabilize the exchange rate? Is there a limit to how much it can intervene in the foreign exchange markets?
Suppose that capital per hour of work grows by 3 percent and technology grows by 1 percent over a one year interval. What is the growth rate of real GDP per hour of work? Show the formula and all work. To understand what causes productivity growth, w..
If the table represents the demand faced by a monopoly firm, then Illustrate what is which firm's marginal revenue as it increases output from 1300 units to 2200 units? Elucidate how all work.
Nepal as a small open economy declared war on Germany on 4 September 1939, in which its government purchases increased and the rest of the world's government purchases also increased due the large defense spending. Then, for Nepal, holding others thi..
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. Explain the problem of “adverse selection” and the problem of “moral hazard.” Give one example of a market in which ..
Elucidate how much in revenues do businesses receive in the product marketplace.
Globalization has had a significant impact on the world economy and the economy of the United States. Using economic principles, describe how globalization has affected positively and negatively the economy of the United States.
Alpha Industries operates in a highly competitive market. While there are a few other firms in the industry due to the high fixed costs of building plants, rival firms are very aggressive in their pricing strategies. Of the products sold in the indus..
assume a visitor from another nation decides to open a checking account at j amp r national bank. the visitor deposits
Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.
why do points on a utility possibility curve represent efficient allocations of resources? why must the utility
Bill gets utility from consuming food (F) and clothing (C) represented by the following utility function: U(F,C) = FC + F. The price of food is $1 per unit and the price of clothing is $2 per unit. Bill’s income is $22. Find the utility maximizing ch..
Do you think that the tit-for-tat strategy will be successful in maintaining cooperation in cases where the repeated prisoners dilemma is being played with a finite time horizon (i.e. players know when the game will end)? Explain. Imagine that you ar..
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