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Question: 1. Why is relative purchasing power parity (PPP) more likely to hold in a hyperinflationary period than in a more "normal" period of price behavior?
2. Do you think that the monetary approach is a satisfactory explanation of a country's exchange rate? Why or why not?
3. In the portfolio balance model, what effect, other things equal, will a foreign government's budget deficit financed by issuing bonds have on the home country's currency value and why? (Assume a flexible exchange rate.)
Housing prices: Suppose a condominium can be rented for $1,000 a month, it depreciates at 10 percent per year, and the annual interest rate is 5 percent.
Which of following industries would you classify as an oligopoly? Which would you classify as monopolistically competitive? Explain your answer.
The mysterious character of the commodity-form consists therefore simply in the fact that the commodity reflects the social characteristics of men's own labor as objective characteristics of the products of labor themselves, as the socio-natural p..
16. Use a financial calculator or computer software program to answer the following questions: A. What would be the future value of $15,555 invested now if it earns interests at 14.5 percent for seven years? B. What would be the future value of $19,..
Select a good or service that you are familiar with (perhaps, a good that your company produces or a good or service that you like to buy). What factors affect the supply and demand of this good or service? How do you expect the equilibrium quantity
describe your understanding of externalities by providing an example of a positive externality and a negative
Discuss the reason for the differences in the measured betas for Sophie Fashion
The goal of all capitalists is to dismiss the competition and gain market power. a) Explain why that might be hurtful for the economy, though not for everybody, clearly stating who wins and who loses in the presence of monopolies.
According to Okun's law, what unemployment rates would we expect to see in this economy? b. Consider another economy in which the unemployment rate over the next three years is 6%, 7%, and then 4%. According to Okun's Law, what are the levels of s..
The coach wants to help Omar and has asked him to lead the prayer at the next game. Omar is nervous about whether he should say a Christian prayer or a Muslim prayer. He is also concerned about how to respond to the invitations to attend church.
Define the type of market in which your selected product will compete, along with an analysis of competitors and customers.
Explain the factors that will affect demand, supply, and prices of that product e.g. Externalities and government public policy. How people make decisions? Why the demand curve slopes downward and the supply curve slopes upward?
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