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Using the fundamental equations from the simple monetary approach, describe how each of the following will affect the home and foreign price level, real money balances, and the exchange rate, EH/F . Also, state whether the home currency appreciates or depreciates for each.
(a) An increase in the home money supply
(b) An increase in the foreign money supply
(c) An increase in the home real income
(d) An decrease in the foreign real income
Cigarettes currently sell for $10 a pack. Suppose the government imposes both a $4 sales tax and a $7 excise subsidy on cigarettes. Use a graph to demonstrate that the new price must be somewhere between $3 and $6 a pack.
The Federal Reserve took money out of the banking system to raise the federal funds rate-the rate at which banks lend each other money overnight-from 4 percent to 4.5 percent. How does the Fed take money out of the banking system? Explain how doing s..
Suppose that the production function is y=ka, where y and k denote production per unit of effective labor and capital per unit of effective labor, respectively. Suppose also that the saving rate, the depreciation rate, the growth rate of the populati..
Illustrate what do you think would be the short-run impact on the firm's production.
Determine if each of the following value functions is loss averse.
Illustrate what is the total cost of finding a new plot of grass and getting y units of grass from it.
Is there a relationship between GDP and the business cycle. If so, explicitate relationship exists and how might a business manager use this information to increase their profits.
what could affect every also a Discussion of why it is more accurate to examine both when trying to conclude a nation's economic success.
Economists say that wages of most countries relative to the US are, for the most part, similar to their productivity relative to the US. Do you think US apparel manufacturers would agree with this?
Illustrate what do you think would occur when there is little or no competition is a marketplace
q.you are the ceo of a fortune 500 company. you have two objectives1. invest 5 million cash on hand short term
Other things being equal, the markup above marginal cost that a monopolist charges will be:
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