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If the US inflation rate becomes high relative to Canadian inflation the following outcomes will occur for the scenarios listed - a) The demand for Canadian dollars will increase; b) The supply of Canadian dollars available for sale in the market will decrease; c) The value of the Canadian dollar will increase Assuming all other things remain equal. Is not the converse true? Given π = m + v - y, and given that the situation shows no evidence of a change in the rate of velocity or of national income, an increase in inflation reflects a direct increase in nominal money supply, m. Correct?
The more interest elastic (the flatter) the investment demand function, the stronger will be the “crowding out” effect associated with a pure fiscal policy measure.
A firm faces a demand where q = 256/p^2 . q is quantity demanded, P is price. Its P2 total cost function is TC = 0.5q^2 + 10 . What is its total revenue function in q? What is its profit function? What is its marginal revenue function? What is its ma..
From the e-Activity, compare and contrast the primary economic issues and policies both the Republican and Democrat parties address concerning the U.S. healthcare delivery system overall.
Consider the following mutually exclusive alternatives: Each alternative has a 5-year useful life and no salvage value. The MARR is 10%. Which alternative should be selected if one uses?
Explain what should be the production level if fixed costs rose to $70,000 per month. what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity.
Identify a recent purchase in which the price of the product was an important consideration in the decision-making process related to purchasing the product. What other factors affected your decision? How important was your income as a factor? How im..
q.a particular firm began very small. they found that getting larger was painful - it involved a lot of new
If you have a perfectly competitive industry of 100 firms with a monthly demand curve of Q=1000-P and TC=Qi^2+100Q+100, a subsidy of $36/month, a long-run equilibrium (before subsidy) of P=140, Q=860 (each firm produces 5 units) and a long run equili..
If the mortgage interest rate is 7 percent, approximately how much are home owners paying in annual mortgage interest? b. If the interest rate drops to 6 percent, by how much will annual percentage decline?
An increase in the spread between interest rates on10-year bonds of Italy and Spain and interest rates on 10-year bonds of Germany indicates:
If the marginal product of the 4th worker hired is 6, and the marginal product of the 5th worker hired is 4, you should not hire the 5th worker because your profit would decrease since the 5th worker’s marginal product is less than the marginal produ..
Illustrate what is the profit maximizing price of carpets. Illustrate what is the profit maximizing price of carpets.
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