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1. Suppose the French suddenly develop a strong taste for California wines. Draw a graph below to answer the following questions:
a.) What happens to the demand for dollars in the foreign exchange market?
b.) What happens to the value of dollars in the foreign exchange market?
c.) What happens to the quantity of net exports?
The International Monetary Fund IMF supply assistance to nation experiencing economic woes.
What is the profit-maximizing price to charge a Texan for a car wash? What is the profit-maximizing price to charge a Californian for a car wash?
How would each of the following affect the firm's marginal, average, and average variable cost curves?
What elasticity of demand did the Village Administrator seem to assume here in his prediction for 1970- 1971? Compute the approximate elasticity of demand (round off, two decimal places is close enough).
Illustrate what will happen in the short run and long run to the world real GDP and the price level. Moreover, describe what policymakers could do after this has happened.
Describe what do you mean by the price elasticity of supply.
Which is more likely to return the European economy to long term growth, austerity (reducing public debt) or deficit finance (increasing public debt)? Use economic models to analyse this question.
Assume you are a financial advisor to an investor whose portfolio consists of 400 shares of Delta Cruise Inc. stock and 10 put options on the same stock.
Economic and political stability are important factors to be considered when finalizing an international investment. Illustrate what are some specific risks of investing in politically and economically unstable countries. Cite real life examples.
Illustrate what range of labor input is marginal product smaller than average product. What is happenning to average product as employment increases over this range.
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
Given the high value of the Canadian dollar relative to the U.S. dollar, Canada should lower the value of the dollar and keep it at this lower level,
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