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Suppose China exports TVs and uses the yuan as its currency, whereas Russia exports vodka and uses the ruble. China has a stable money supply and slow, steady technological progress in TV production, while Russia has very rapid growth in the money supply and no technological progress in vodka production. Based on this information, what would you predict for the real exchange rate (measured as bottles of vodka per TV) and the nominal exchange rate (measured as rubles per yuan)? Explain your reasoning. (Hint: For the real exchange rate, think about the link between scarcity and relative prices.)
Compute the income elasticity of demand for product below, by using average values for quantities and incomes.
Illustrate what economic policy should be adopted by regions with persistent economic problems.
Determine elasticities for every single variable in the equation (ignore the constant). Interpret your answers (say what the elasticity means). What would be the effect of a $5,000 increase in the competitor's advertising expenditure?
Find MPS (marginal propensity to save), MPC (marginal propensity to consume) and the multiplier. b. What is the break-even level of income? c. Would you consider the break-even point as the equilibrium point? Why or why not?
supply and demand conceptsyou have been hired by a new firm selling electronic dog feeders. your client has asked you
Explain whether the evidence above suggests whether the dollar is appreciating or depreciating relative to the Euro. What is your conclusion? Explain how you come to that conclusion.
a. What is the present value of the monopolist's current and future earnings if entry occurs? b. If the monopolist can earn $16 million indefinitely by limit pricing, should it do so?
Sales representative Joshua's performance index for February was 120 with sales of $240,000. What was his sales target for the month of February?
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Why must a Request for Proposal (RFP) procurement follow stringent instructions, rules, and processes, in particular, when the RFP is released by the U.S. federal government, state government, or county government?
Based to the News, how much more did the average household spend on appliances, electronics, and furniture when it received the 2008 tax rebate?
What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate pa..
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