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Suppose that some foreign countries begin to subsidize investment by instituting an investment tax credit.
(a) What happens to the investment in our small open economy?
(b) What happens to our trade balance?
(c) What happens to our real exchange rate?
illustrates what is a possible analytical tool to study the impact of WTO's trade rule on economic development of SSA?
Assume which a industry has "pricing power" also can segregate its marketplace into two distinct groups based on differences in elasticities of demand.
Plot the goods in a graph with realness on the horizontal axis and (relative) exclusion cost on the vertical axis. (1) 1000 pounds of compacted scrap steel; (2) 1/2 ton of compacted scrap steel; (3) a mahogany tree in an inaccessible Central American..
What is approximately maximum amount rm is willing to pay to be allowed to use e more units of input x, for e small.
Assume that a 1- year discount bond (bond A) with a face value of $1,000 is currently trading at PV = $943.40 offers YTM = 6%, and another 2-year discount bond (bond B) with identical risk features and face value is currently trading at $873.44 and o..
Suppose that all the necessary conditions exist for the realization of equal wage rates in every market of labor.
q.a toy manufacturer launched a new toy truck last year which was a huge success. 2.5 million invested by company for a
Suppose a widget manufacturer has an infinitely substitute production function, q=3L+2K, given that MPL= 3, MPK= 2. If both the wage rate and rental rate are $10. What is the cost-minimizing combination of L and K to produce 60 units of output. How m..
AAA Triangle framework to describe generic approaches to global value creation - Adaptation strategies seek to increase revenues and market share by tailoring one or more components of a company's business model to suit local requirements or prefer..
Describe how a surplus of money leads to a change in bond prices and interest rates. Explain all the steps.
What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription? What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year f..
A firm in a perfectly competitive market invents a new method of production which lowers its marginal costs. Illustrate what happens to its output.
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