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1. Suppose the value of the US dollar is pegged to gold at a rate of $50 per ounce. Next, suppose that the value of the British pound is pegged to the US dollar at a rate of 1.5 dollars per pound, and the value of the Canadian dollar is pegged to the US dollar at a rate of 1.38 Canadian dollars per US dollar. Calculate the value of the Canadian Dollar and the British pound relative to gold.
2. Using the information in question 3, calculate the exchange rate between the Canadian dollars to the British pound.
Decide whether each of the following statements is a normative statement or a positive statement, then explain your answer. The gasoline tax is projected to yield $10 million in tax revenue next year. If the gasoline tax was raised by 10 cents per ga..
The volatility of the present floating exchange rate regime presents a conundrum for international business. Exchange rate movements are difficult to predict and yet their movements can have a major impact on the competitive position of business. Wha..
Perfect Competition is a model of which examples are few and far between. Yet economists love to discuss this model. Explain why. Discuss how an imperfectly competitive firm resorts to price discrimination to maximize its profits.
If a rise in incomes is the same proportion for both low-income and high-income workers.
Analyze the business considerations presented by the situation. Compare two radically different approaches to addressing the situation.
Compare and contrast the major negative fluctuation in the 1980s with that of the Great Recession (post-2007) with a focus on (i) the extent of the fluctuation and (ii) the speed of the recovery.
A physical therapy clinic faces a demand equation of Q = 200 - 1.5 * P, where Q is sessions per month and P is the price per session. The clinic currently charges $80. If the clinic lowered its price to $70, what would happen to volume and revenue?
Which is an example of a microeconomic question? What is the current national rate of unemployment? Is the economy experiencing a decline in the rate of inflation? Will a new type of television set increase the number of buyers?
How does WinRunner recognize objects on the application?
Apply supply and demand analysis to price determination and predict changes in supply and/or demand Analyze the effects of elasticity on consumer and business behavior
In economy A, the LM curve is very steep, but not vertical (call this the “Friedman” economy) while in economy B, the LM curve is very flat (call this the “Keynesian” economy). The economies are identical in all other respects. What is the economic m..
In general, correcting income distribution data for taxes and transfer payments results in:
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