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Until recently, China actively purchased US Treasury securities in order to limit the appreciation of its currency. (Currently it is losing foreign reserves). For this question you are asked to read two articles about how the USA should have responded to this strategy. Both are by Paul Krugman, and are posted on the course webpage: China, Japan, America" and Fear-of-China Syndrome". According to Krugman, should the USA be worried about China suddenly deciding to sell its holdings of US treasury bonds? Why or why not? Do you agree? Why or why not? According to Krugman, how do you explain the fact that since the nancial crisis the US government budget decit has exploded, yet at the same time the US Current Account decit has actually decreased. What happened to the `twin decits' hypothesis?
Should the Government Control the Economy? STEP 1 Research arguments for and against one of these topic questions: Should government raise the minimum wage? or Should government set the price of gasoline?
Suppose that one canister of Pringles costs £25, that of Macadamia Nuts costs $5 per can, and that the relative price of Macadamia Nuts in terms of Pringles is 3 cans per canister. Figure out the following: The dollar-pound exchange rate, i.e. the pr..
Since under price leadership by the dominant firm, the firms in the industry following the leader behave as perfect competitors or price takers by always producing where the price set by the leader equals the sum of their marginal cost curves.
A firm that makes zero economic profits
Why is the growth of per capita real GDP a better measure of economic growth than the growth or real GDP? What is the level of output after four years of initial output equals $1000 and the economy grows at a rate of 8 percent a year.
Petra consumes only two goods, pizza (P) and hamburgers (H) and considers them to be perfect substitutes, as shown by his utility function: U(P, H) = P + 4H. The price of pizza is $3 and the price of hamburgers is $6, and Paul’s monthly income is $30..
Suppose the MPC is an economy is 0.9. The APC is initially 0.95 and disposable income is $4 billion.
What are the two most commonly used/analyzed financial statements? Explain what each of these are, what info they contain, and why they are significant in evaluating the overall "health" of a company.
The no-trade equilibrium in Foreign. How do the relative no trade prices of computers compare in Home and Foreign.
The inverse demand in a Cournot dupoly is P=a-b(Q1+Q2) and costs are c1(Q1)=c1Q1,and C2(Q2)=c2Q2. The government has imposed a per unit tax of $t on each unit sold by each firm. The tax revue is ?
The owner/manager of an athletic shoe store has revenue of $260,000 per year and labor, interest, inventory, and miscellaneous expenses of $200,000. The owner also owns the building the store is located in. What and how much are the store owner’s imp..
If the demand for smart phones is price inelastic,
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