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Using the Mundell-Fleming diagram, explain what is meant by effective policy instrument choice, being careful to identify clearly the critical elements of the diagram. Why is the EB curve postulated to be more interest-elastic than the IB curve? In what ways is the IS/LM/BP model preferable to the simple Mundell-Fleming diagram?
We assume there are no lump-sum taxes and no dividend income: ? = T = 0. We assume h = 1 and the wage rate w = 1. There is a consumption tax such that for each purchased unit of consumption, the consumer needs to pay 1 +t units where t goes to the..
What dangers are being shown by the rise in food and commodity prices? Explain. Why is it dangerous that the government is ignoring it?
1 for each of the following changes show the effect on the supply curve and state what will happen to market
What will be the price of this bond? Suppose the market rate of interest rose to 12%; what would happen to the price of the bond?
Rebut the above criticism from the viewpoint of the proponents of the flexible exchange rate regime.
1. Apply a 2 percent discount to all engagements for customer who booked more than $3000 worth of business in the month of October 2012.
What is the lottery payment plan
The demand for watermelons is highest during summer also lowest during winter. Yet watermelon prices are normally lower in summer than in winter.
Consider that an entrant's ability to enter a market is fought, with the possibility of withdrawing from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player).
1. A production function can exhibit increasing, constant or decreasing returns to scale. Describe the meaning of this statement using a simple production function Y = F (K, L), where K is capital and L is labor. Why might it exhibit increasing o..
Outline a scenario in which you might be acting ethically but might still want to remain anonymous while using the Internet. Identify two approaches someone might take to learn your identity even if you attempted to remain anonymous.
Using a demand and supply diagram, describe the impact that overfishing mighthave on the equilibrium price and quantity of Bluefin tuna in the future.
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