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Suppose that production of very cool cars in Denmark (a small open economy) increases exports in Denmark. How does this event affect the Danish NX curve, the Danish real exchange rate, the Danish nominal exchange rate (the Danish kroner to be more precise), the quantity of imports and exports in Denmark, and the openness index in Denmark? Provide intuition for the effects on each of the variables
Elucidate what would be the immediate and long run effects on c, k, and y. Explain by drawing the path of these variables. Consider that you impose the new saving rate.
Personal income and spending: How much has personal income changed in the last two years? Identify any problems the government needs to address, and possible solutions?
Two important concepts that our chapter on Foreign policy discusses are the values that drive foreign policy and the specific instruments that are utilized to carry out foreign policy. In the post-9/11 and Afghanistan/Iraq Conflicts era, do you think..
Botulinum toxin, marketed under the brand name "Botox" is a drug that paralyzes muscles into which it is injected. It is one of the few promising treatments for migraine headaches, which affect about 10% of the population. Migraine headaches are debi..
Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. The other clinic has a volume of 10,800, margina..
Explain how natural monopolies cause market failure? How is the deadweight loss associated with this form of market failure measured? What is a typical form of government intervention to correct it? How effective is this type of intervention? Use the..
Illustrate what is the key assumption of the basic Keynsian model? Explain why this assumption is needed if one is to accept the view that aggregate spending is a driving force behind short-term economic fluctuations.
“The shopper is not expecting to develop a personal identity by choice of commodities; that would be too difficult. Shopping is agonistic, a struggle to define not what one is, but what one is not.” What does Douglas mean by this statement?
The best use of scarce resources paid for at the minimum level of cost to consumers and businesses
What is the effect of an increase in the tax rate on interest income on the supply of and the demand for loan able funds?
The disconfirmation paradigm is used to study two variables: consumer prepurchase expectations and _____. A. consumer behaviors related to the buying process B. decision-making roles within the purchase process C. the relationship between product kno..
What were the major areas of disagreement between John Maynard Keynes and the classical economists?
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