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Proponents of the managed floating exchange rate system argue that it has added the volatility needed by the exchange rate market. been effective because it is a "nonsystem" without fixed rules. been sufficiently flexible to weather major economic turbulence. resolved major problems in balance of payments surpluses and deficits.
Explain how much should the store charge for an yearly membership in order to extract the entire consumer surplus via an optimal two-part pricing strategy.
In most developing nations, there are long lines of taxis at airports, and taxis often wait 2or3 hours. What does this tell you about the price in developing nations market?
Describe and graph (using AD/AS framework) an example in today's news of fine tuning economy. Assume the MPC in an economy is 0.8, the APC is 0.8 and disposable income is $9 billion. If disposable income increases to $14 billion, what is the new le..
Capital budgeting projects comprise all of the following with the exception. Asymmetric information represents a market situation.
Theory Galbraiths of consumer demand has an important implication in terms of underallocation of resources to public goods.
Explain how the invisible hand fights back when government try to overrule market forces with price controls.
After a nation's (not USA) foreign-capital flows are frozen, a large international supply of USD dollars shows up. What happens to the quantity of USD dollars demanded.
Explain demand for cassette players is price elastic also they are cyclical normal goods.
Illustrate what are some of the comparative advantages for the companies to operate in the host country.
If supply decreases along a given demand curve. Fiscal policy focuses on manipulating.
Explain the importance of free entry and exit in the perfectly competitive market. That is if free entry and exit did not exist, what impact would this have on the allocation of resources and on the ability of firms to earn above normal profits ov..
The supply of loanable funds will shift to the right if either: A) Tax reforms encourage greater saving or investment tax credits were increased B) The budget deficit became larger or tax reforms discouraged savings C) The budget deficit became large..
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