Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose that there is a TEMPORARY INCREASE IN THE DEMAND FOR IMPORTS that exogenous (due to changes in tastes, not due to changes in the real exchange rate or disposable income)
(a) Using AA-DD diagram for a floating exchange rate system, show what happens to national income and the exchange rate as a result of this temporary increase in the demand for imports. EXPLAIN what causes any curves to shift.
(b) On another AA-DD diagram, show how this same temporary increase in the demand for imports would impact on national income in the short run if there were a FIXED EXCHANGE RATE system instead. Explain what causes any curves to shift.
(c) Under which regime (floating or fixed) is the impact on national income greater? Your answer must be consistent with your previous answers in this question.
(d) Suppose the exogenous increse in demand for imports were PERMANENT INSTEAD. On a diagram showing how the real exchange rate is determined using relative supply and demand curves, indicate how the increase in the demand for imports affect that diagram and determines a new real exchange rate. Show AA-DD diagram what would happen to output and the exchage rate in the short run and the long run under a floating exchange rate system as a result of the increase in the demand for import. Assume the country begins at a long run equlibrium.
Suppose you discover that average fixed costs are $2 and average variable costs are $7. Indicate what the firm should do.
goods and services that are not sold in markets such as food produced and consumed at home and some household articles
There is a potential entrant, who needs to pay a sunk cost of f to enter in this market. Firms may produce any quantity that does not exceed its capacity.
As we noted in class, most members of labor unions work in the public sector, industries that are regulated, or industries in which production is concentrated into a few firms. Consider a perfectly competitive industry with many firms that produce th..
What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded?
Loyalty programs are more the norm than the exception. Once all competitors offer similar schemes, all that happens is that marketing costs have risen in that industry. Argue for or against the proposition that loyalty programs are effective customer..
Does this seem counter-intuitive to you? Be sure to include an explanation of why China score is relatively low compared to the U.S.
Suppose that Congress is successful in passing a large tax increase that actually be enacted this year. Using three separate aggregate supply and aggregate demand graphs,
Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $200,000 and qualifies for five-ye..
Increase in Government expenditure makes increase in real GDP via multiplier process. If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to close a 500 billion negative output gap, other thin..
Think about the pricing methods--markup pricing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction-type pricing. As a consumer, which do you prefer to deal with? Why? If the average price were to stay the ..
Think about the ABC approach to consumer attitudes. How do the various components apply to your daily life as a consumer? Give examples and discuss!
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd