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The government of a small open economy wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate).
A) Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reductions and quota eliminations) be more effective in generating currency appreciation?
B) Illustrate graphically the impact of the trade policy on the exchange rate of the small open economy.
C) What will happen to the trade balance of the small open economy as a result of the trade policies, assuming that the country started from a position of free trade?
D) What will happen to the quantity of exports and imports as a result of the trade policies?
Walmart has had many problem with it's work force over health insurance, forming a union etc. Would you consider walmark to me a monophony? Explain why and why not. What impact will having a union have on the workers and on Walmart.
As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, illustrate what two policies could you use to reduce the total amount of emissions.
Consider the Malthusian Growth Model. The production function is Y = LaN 1-a, where L is fixed stock of land, N is current population, and 0
Mitchell Bancorp is considering making a loan at 3% interest (c/a) to Sohn Co to buy a machine tool worth $300 million. The tool has no salvage value and is depreciated over 3 years by sum-of-years digits. In this state, Sohn Co pays 50% tax. Assume ..
Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail
The United States currently has an “opt-in” system for organ donations from the deceased. People must explicitly choose postmortem donation ahead of time (as when they obtain their driver’s license). Many other nations have “opt-out” systems:
If a contractor decides to deviate from this agreement, what would the optimal deviation be?b. Suppose that M = 10 and C = 1. For which values of "delta" is this a subgame perfect equilibrium of the infinitely repeated game?
Briefly define the following terms. Tariff escalation, Optimal tariff rate, Ad valorem tariff equivalent, Voluntary export restraint (VER), Terms of trade effect (of subsidy), Harmonized System (HS) of commodity Classification, Common external tariff..
When the Bank of Canada's foreign exchange traders go into the market to support the Canadian dollar, they trade US dollars from Canada's reserves for Canadian dollars that other people are trying to sell. The Canadian cash resulting from this transa..
Using graph, illustrate the effect of an increase of the input price on the production and profit of a one input-one output firm with decreasing return-to-scale technology?
Calculate the standard deviation of annual sales. Calculate the coefficient of variation of annual sales.
Suppose savers either buy bonds or make deposits in savings accounts at banks. Initially, the interest income earned on bonds or deposits is taxed at a rate of 20%. Now suppose there is a decrease in the tax rate on interest income, from 20% to 15%.
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