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1) IMF orders country A to cut its budget by 25% and reduce the value of its currency by 40%. Before these changes the country had a GDP of 4000 billion and a G of 1200 billion, a trade deficit of 300 billion and a C of 2000 billion. After the IMF suggestions the following changes were noticed: a trade surplus of 100 billion, a reduction in C of 5%, and an increase in I of 50%. What is country A's GDP after the IMF orders were implemented?
2) Country X has a balanced budget, an actual GDP of 15,500 billion and a gap to potential GDP of 1000 billion. There are 2 political parties: the Bronze Age Party which recommends to cut taxes by 400 billion if elected, and the Spend Happy Party which suggests a 500 billion budget deficit. a) what will be the inflation rate if the Bronze Age Party wins and implements its platform? b) What will be the inflation if the Spend Happy Party wins and implements its platform?
3) Country A is on the PPF. It decides to run a budget deficit of 100 billion. Both its potential and actual GDP is 800 billion. What will happen if country A decides to run this deficit? And why? Give a full explanation for this expected result.
Assume that the government buys are increased from 100 to 150. How much does the IS curve shift? What are the new equilibrium interest rate and level of income? Describe it.
Determine the main costs of production for the goods or services your organization supplies? Breakdown the costs from the largest to the smallest.
Name the 5-stages in the purchaser decision process and briefly describe the online and offline marketing activities used to influence each.
For a world in which international trade would be according to the differences featured in the Heckscher-Ohlin theory, the shift from no trade to free trade is like a zero-sum game.
The Republic of Republic produces 2-goods, marshmallows and soda water. In 1994, the one hundred units of MM produced sold for $3 a unit and 50 units of SW produced sold for $1 a unit.
Assume foreign income rise to 108,000 and interest rate is allowed to temporarily diverge from world economy interest costs. What are the equations for IS and LM curves?
Assess and explain a major trade regulation or policy of the United States (please choose a regulation or policy other than one already discussed by your classmates). What purpose(s) does the regulation or policy serve?
Evaluate the likelihood of conflict and cooperation in the future on issues of transnational crime, health, and environmental problems.
Would you have a higher consumption standard of living by self sufficiently producing all the goods you and your family want to consume through employing your labor time
Assume the dollar-pound rate equals $.5 per pound. According to purchasing power parity theory, determine the dollar's exchange rate under each of the following scenarios?
Using demand and supply analysis to assist you, determine the effects on the exchange rate between the British pound and the Japanese yen from:
What is PM firm's optimal organizational structure? How does it impact PM firm's international market expansion plans? How would it change as PM firm adopts additional international market expansion strategies?
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