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Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks. Be sure to include an appropriate graph in your answer.
a) A fall in consumer confidence about the future induces consumers to spend less and save more.
b) The introduction of a stylish line of Toyotas makes more consumers prefer foreign cars over domestic cars.
c) The introduction of automatic teller machines reduces the demand for money.
Presume you originally invested in a firm when it was small and unprofitable. Now the firm has grown to be large and profitable. Would you be better off now if you had bought the firm's stock or the firm's bonds?
Suppose that the average household in a state consumes 800 gallons of gasoline per year. A 20-cent gasoline tax is introduced, coupled with a $160 annual tax rebate per household.
country x and country y have the same level of output per worker. they also have the same values for the rate of
USING A DEMAND AND SUPPLY DIAGRAM, ILLUSTRATE AND EXPLAIN THE NET WELFARE LOSS FROM IMPOSING SUCH A QUOTA. UNDER WHAT CIRCUMSTANCES WOULD THE NET WELFARE LOSS FROM AN IMPORT QUOTA EXCEED THE NET WELFARE LOSS FROM AN EQUIVALENT TARIFF
State thes implified version of the problem in which the household chooses tomorrow's capital stock instead of today's investment .2 Given the Setup in 1.1, state the current value Lagrangian. .3 State the household's first-order conditions for cons..
What dilemma faces regulators trying to regulate natural monopolies? Political corruption is epidemic in Russia today. What effect does this have on the Russian economy? Contrast and compare bureaus and business firms.
write an article concerning trends in consumption patterns.prepare a 1050-1400-word paper in which youdefine economics
Describe how each of following will affect consumption and saving schedules as they relate to GDP or the investment schedule, other things equal,
as a chief operating officer you are responsible for a 15-bed emergency room er. you have received many complaints
How can the procyclical movement of interest rates(rising during expansions and falling during contractions) lead toa procyclical movement in the money supply as a result of Feddiscounting Why might this movement of the money supply beundesirable
describe the market structure of perfect competition in terms of number of producers control over price by firms in
What would be the appropriate fiscal policy to help our economy? Please evaluate how our economy is doing and why you selected your respective fiscal policy action. What are some of the challenges of using fiscal policy to stabilize our economy
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