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In 2010 the Financial Times reported that the Mexican Finance minister called for a third change to the country's taxes in as many years. (Financial Times, March 19, 2010) The result would be an increase in tax revenue for the Mexican federal government. Assume that Mexico is a small open economy. How will the increased taxes affect investment, savings and the real exchange rate for Mexico? Show graphically and explain. (Assume no other changes in the economy.) Also, how will the higher taxes in Mexico affect the world interest rate? Explain.
If the bank maintains a reserve requirement of 2 percent, what is the maximum loan that the bank A can make b) what is the maximum amount by which the money supply can by increased as a result of bank A's new loan
you are a data analyst with john and sons company. the company has a large number of manufacturing plants in the united
In the competitive market, the market demand is Qd=48 - 5p and the market supply is Qs = 7P. The equilibrium price is4
chez henri is a restaurant chain that operates in 40 different cities. it hired an economist to estimate the factors
Given the accelerationist Phillips curve = - 0.3 (U - 6) + , suppose that inflation in the preceding period was 3 percent, unemployment is 7 percent, and there is no price shock. The current inflation rate is ________.If expectations about inflat..
One year ago, you bought a bond for $10,000.00. You received interest of $400.00 at the end of the year, as well as your $10,000.00 principal calculate the real return.
Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.Suppose the central bank conducts an unusually large open market purchase of bonds held by banks of 1400 billion due to a sharp contraction i..
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If the price elasticity of demand for gasoline is 0.3, and the current price is $1.20 per gallon, what rise in the price of gasoline (in cents or dollars) will reduce its consumption by 10%? please explain.
a pharmaceutical company has a patent on a lung cancer treatment drug that gives them a monopoly over thenbsp
Explain why a government might want to regulate a monopolist and How can governments negate the adverse side-effects of gold-plating and cost padding?
1. which of the following best describes what happens when consumer income increases?a there is a shift to the right in
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