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Suppose that the Home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in agricultural output. What will happen to the real rental price of capital when trade occurs?
This would be a good chance to point out one very important information. We associate monetary rule with lower or higher interest rates, but what most people do not realize is that the Fed is actually doing is changing money supply
So many states provide firms with an investment tax credit that effectively reduces the price of capital.
Consider a market-clearing economy in which output (Y 1 )depends only on the capital stock (k 1 ) and an exogenous productivity variable ( θ1 ) according to the production function y1 = θ 2 f(k 2 ).
Suppose that interest parity does not hold exactly, but that the true relationship is R = R* + (Ee - E)/E + r, where r is a term measuring the differential riskiness of domestic versus foreign deposits. Suppose a permanent rise in domestic governm..
Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
Derive the Aggregate Demand (AD) curve graphically, the experiment is to change Y in i-Y space and see what happens to P.
Economic growth has increased in the past few months in the United States and driven by a surging stock market and increased confidence in the global economy, Canadians have increased optimism about the future of economic growth.
Explain how has a more diversified labor force affected the corporate structure and the economy.
Prediction of changes in the business environment affecting strategic planning. Elucidate the relationship among strategic planning and organizational design.
Suppose the demand for ABC product has an elasticity coefficient. Explain how many it will sell per month if the price
Given that the annual average growth rate of potential GDP is 6.48%. Suppose the economy grows 0.5%/year faster than at the growth rate of potential GDP. What is the first quarter at which actual GDP exceeds potential GDP?
If you assume that the forward rate is a predictor of the future spot rate, does it suggest that the Dollar should have appreciated or depreciated from 2001 to 2002? (round to nearest integer)
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