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a. Assume a country is in a fixed exchange rate regime such as China. Explain what factors might cause individuals to expect that a country will revalue its currency. Explain the various actions that policy makers can choose in response to this expected revaluation.
b. Assume a country is in a fixed exchange rate regime. Now suppose that individuals expect that policy makers will devalue its currency. Explain the various actions that policy makers can choose in response to this expected devaluation.
c. Suppose the economy is operating below the natural level of output. Discuss the arguments for and against using devaluation in such a situation.
d. Suppose the economy is initially operating above the natural level of output. In a fixed exchange rate regime, explain how the economy will adjust to this situation.
Consider an air basin with only two consumer, Huck and Matilda. Suppose Huck's demand for air quality is given by q_h=1-p where p is Huck's marginal willingness to pay for air quality. Similarly, Matilda's demand is given by q_m=2-2p. Air quality ..
Government needs to eliminate the gap by changing expenditures. What policy would you suggest.
Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression.
Statistical studies have shown that the price elasticity of demand is -0.4, and the price elasticity of supply is 0.5. Using this information, derive linear demand and supply curves for the cigarette market.
Using appropriate model, illustrate the effect of an expansionary fiscal policy in an open economy operating in free exchange rate regime. Assume perfect capital mobility. What is the effect if the government uses monetary policy alternatively?
Major multinational company such as Acme (some of which are listed below) attempt to track the relative movements and magnitudes of global capital investment.
From a previously answered question by you on May 14th; "The city of Clearview has decided to review how it handles the flow of tourists at Tourist Tower, the city's most popular attraction..."
Does too much of recent government regulation have the goal of behavioral change versus encouraging economic growth and efficiency?
Use the partitioning idea of quicksort to give an algorithm that finds the median element of an array of n integers in expectedO(n) time. (Hint: must you look at both sides of the partition?)
Consider the market for political advertising during an election campaign. The private marginal cost of producing a political advertisement is PMC = 200 + 2q where Q is the quantity of advertisements, and the private marginal benefit (demand) curv..
How the size of the multiplier effect could be determined by factors both in the goods and the financial market and provide a short overview of the Slovenianausterity programme, and the justification
Harvard, Yale and Princeton all charge relatively high tuition. Still each uses ACT and SAT score as admission criteria. Are charging a relatively high tuition and using standardized test scores inconsistent? Explain your answer
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