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Is overshooting (in theory and in practice) consistent with purchasing power parity? Consider the reasons for the usefulness of PPP in the short run versus the long run and the assumption we've used in the asset approach (in the short run versus the long run). How does overshooting help to resolve the empirical behavior of exchange rates in the short run versus the long run?
What is the annual compounding interest charged? Using the compounding annual interest rate from above, what is the nominal, period interest rate and corresponding effective interest rate if compounding is hourly? Assume 30 days per month.
Calculate the marginal effects in the logit analysis and compare them with those obtained using OLS.
For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000 Should the firm shut down immediately ..
Describe how you could use an options contract to hedge against the risk of losses associated with the potential appreciation in the U.S. dollar.
Compute the profit-maximizing price and quantity, and illustrate with a complete graph.
The Housekeeping Services department of Ruger Clinic, a multispecialty practice in Toledo, Ohio, had $100,000 in direct costs during 2007.
the construction time for a bridge depends on the weather. the project is expected to take 250days if the weather is dry and hot. if the wather is damp and cool it will take 350days. otherwise, it is expected to take 300 days.
A researcher sureys a group of working married women and reports the following results for the first four surveyed: Person % of contribution to household income % contribution to housework x Zx Y Zy C1 601.34 70-1.15 F3 30 -1.34 100 1.61
Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The following production possibilities schedules describe in their potential output in tons per years. Do not graph or illustrate - only provide numerica..
Etta and Moorea run a stand where they sell lemonade and brownies. Their cost function is \(C(Q_{L}, Q_{B})= .50Q_{L}+0.25Q_{B}+Q_{L}^{2}+Q_{B}^{2}-Q_{L}Q_{B}\) They can sell a cup of lemonade for $1.20 and a brownie for $0.95. What a..
In a competitive market, the industry demand and supply curves are P=200-0.2×Qd and P=100+0.3×Qs, respectively. Can you find an ad-valorem tax that would generate $3200 of revenues for the government
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. The demand elasticity of a widget at the monopoly price and quantity is what
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