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Exchange rates, Seigniorage
A. Which are preferable and why, fixed, flexible, or a mixture of the two exchange rates?
b. What countries have officially dollarized their economies. How does the US benefit from it?
c. What is seigniorage?
Describe the point elasticity of demand with respect to advertisement
Elucidate how cost-push inflation might prompt policymakers to take actions that subsequently cause demand-pull inflation.
Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.
The California Instruments Corporation, a producer of electronic equipment, makes pocket calculators in a plant that is run autonomously. What price should the manager charge for the calculators?
Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.
Decreases aggregate quanity demanded among a stationary aggreate curve. E rases the equilbrium level of output and employment.
Utilizing fully explained indifference curve analysis, derive a demand curve for a product.
By how much will each firm reduce its SO2 output? Which firm will buy permits, which firm will sell them, and how many permits will be exchanged?
Illustrate what options do Americans have in protecting their Social Security and dealing with these issues? How are these done on the microeconomic level.
Elucidate the adjustment that will take place in the catfish farming industry in Louisiana that will result from the implementation of the pollution fee. Use diagrams with "U" shaped cost curves.
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Show how a UK exporter can avoid exchange risk by covering in either the spot market or the forward market. When will the exporter be indifferent between these two forms of cover.
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