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1. What does the purchasing power of a money mean? How can it be measured?
2. Suppose the government releases information that causes people to expect that the purchasing power of a money in the future will be less than they previously had expected. What will happen to the exchange rate today? Why?
3. What is the difference between a price level and a price index?
4. What do economists mean by the law of one price? Why might the law of one price be violated?
5. What is the value of the exchange rate that satisfies absolute PPP?
6. If the actual exchange rate for the euro value of the British pound is less than the exchange rate that would satisfy absolute PPP, which of the currencies is overvalued and which is undervalued? Why?
an economic bad is something you dont want to consume i.e. less bad is better. define an economic bad mathematically
Compare and contrast the strengths and weaknesses of today's Federal Reserve operating procedures and monetary decision making policy.
Explain why both nations with high living standards and nations with low living standards face the problem of scarcity. If you won $1 million in a lottery, would you escape the scarcity problem?
Howard Bowen is a big cotton farmer. The land and equipment he has a current market value of $4,000,000. Bowen owes his local bank $3,000,000.
Suppose that the economy starts at equilibrium and the mpc = 0.8.What would be the effect of a 500 increase intaxes once all the rounds of the multiplier process are complete?
The International Monetary Fund IMF supply assistance to nation experiencing economic woes.
The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..
Use Excel or other calculation software to input the data to calculate an estimated regression. Then, from the calculation provided, interpret the coefficient of determination, indicating how it will influence your decision to open the pizza busin..
The Fed should simply raise the money supply at same rate that full employment economy increase, and the government should desist from any stabilizing urges.
Assume the Sri Lanka government awarded contracts to private companies to rebuild the countryâ.
why might a parent company like McDonald s or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee.
Devaluation is often used by countries to improve their current accounts. How might devaluation affect national saving and domestic investment?
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