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What effect does expansionary fiscal policy (under flexible exchange rate) have on the supply and demand for dollar in the FX market? What happen to the nominal price of the dollar, export, import and aggregate demand?
Mary borrows $80,000 to buy her home. Beginning next month she will pay the lender $720 per month for the next 20 years. What is the ROR? (Hint: 20 years = 240 months. Calculate the monthly interest rate first, then multiply by 12 to obtain the annua..
How do prices, output, and profits differ between monopolies and monopolistically competitive firms.
You just won a contest and have been appointed City of New York Tax Commissioner (you might be asking, why did I enter such a contest? :)). Your primary goal is two fold: raise revenue and make the tax code more efficient. You have to decide which go..
A monopolist faces a price function given by P = z(36 - 2Q), where P is price, Q is total output and z is the quality of product sold, which can take on only two values. The monopolist can choose between a low quality product z = 1 or a high-quality ..
Suppose (contrary to fact) that the Scottish independence referendum had passed, Scotland had become independent, and you became its finance minister. Your first order of business is to recommend a currency for Scotland. Three proposals have been mad..
Find equilibrium Y in the basic Keynesian model (round Y to the nearest whole number) What are the values of BS and NX at the equilibrium level of Y? Find the value of savings at equilibrium Y.
Giving a brief explanation, determine the likely effect of each of the following on the value of GM stock.(Consider each event independent of the others.) a. The Federal Reserve lowers both the "discount" rate and the Federal Fund rate.
How does rent control affect the real-estate market? Are you in favor of rent control or not, and why? What needs to happen to prevent scarcity from re-occurring in the future?
Let W represents an individual’s annual earned income and U(W) = (W/10)0.5 is this individual’s von Neumann-Morgenstern utility index (or utility function) . This individual earned income is $49,000. This individual faces the prospect of a 20% chance..
Some countries in Central America are very stable and enjoy a good quality of life, but others are impoverished and underdeveloped. How can these differences be explained? Are inequalities due to local, social or cultural factors, or global political..
What is the best case scenario between Marginal Revenue and Total Revenue? Do we want Total Revenue to be maximized and Marginal Revenue to be equal to zero or do we want Total Revenue to be rising and Marginal Revenue to be positive?
At some levels of output Acme's average total costs are less than Generic's, but at some levels of output Generic's average costs are less than Acme's.
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