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1. Suppose that the average price of goods imported from Great Britain increased. Is it likely that the value of the Australian dollar would appreciate or depreciate versus the British pound, ceteris paribus? Is it likely that the average price in British pounds of goods exported from Australia to Great Britain would rise or fall?
2. Suppose that Australia's price level is 125, the British price level is 100, and the nominal exchange rate of pounds to the dollar is £0.60 = $1. Calculate the real exchange rate of pounds to the dollar. Show all workings.
3. Explain how the CPI is constructed, and discuss any weaknesses with this measurement technique.
Why do countries trade and Research the impact globalization and trade has had on the United States.
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Analyze the relationship among fiscal and monetary policy in an open economy.
Illustrate what do each of the following seek if they pursue their own self interest: consumers, resource owners, and business firms.
A financial advisor at Diehl Investments identified two companies that are likely candidates for a takeover in the near future. Eastern Cable is a leading manufacturer of flexible cable systems used in the construction industry, and ComSwitch is a ne..
1. economists have announced that the country is experiencing aninflationary gap. what economic symptoms or indicators
question if the full-employment level of y is 250 what fiscal policy might the government follow? d. suppose y 200 c
A small firm in the agricultural industry, Joseph Farms, Inc., has researched limited data for their firm. They are asking you to help them complete the information below so they will be able to make decisions based on the data.
Grapg a series of isoquants for the production function q=10, 15,20. Plot at least 5 points for each isoquant by assuring value for q and then a value for L and solving for the remaining value of K to get the needed level of q.
which of the following statements concerning major cycles is incorrect?a. major cycles are characterized by wide
How to Restore Participating and Self-Support to Free Enterprise (Harvard University Press, 197), economist Edmund Phelps. Is the Phelps' plan an improvement over current government policies? 3. The availability of investment capital is critical f..
Explain the effect these vending machines have on the speed of market adjustment. Have you ever wanted to buy a soft-drink on a very hot day, only to find that the vending machines are sold out. How would widespread use of such vending machines af..
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