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Other things the same, the real exchange rate between U.S. and South African goods would be higher if (a) prices in the U.S. were higher, or the number of South African rand the dollar purchased were higher. (b) prices in the U.S. were higher, or the number of South African rand the dollar purchased were lower. (c) prices in the U.S. were lower, or the number of South African rand the dollar purchased were higher. (d) prices in the U.S. were lower, or the number of South African rand the dollar purchased were lower.
a. A Thanksgiving turkey costs $30 in the US and 40 C$ (Canadian dollars). What would the C$/(US dollar) exchange rate be if purchasing power parity holds?
b. From the same problem, suppose monetary expansion in the US caused all prices in the US to increase by 50%, so the turkey would be 45 US dollars, then what would happen to the exchange rate between the Canadian dollar and the US dollar? (show the exact computation and result).
What was the workers' marginal product last year? What is it this year and what is the elasticity of demand for Zamboni air filters?
The European Union is a supranational management that has been capable to overcome tremendous national diversity consider of how different Germany, UK, Italy, Spain etc...
At the moment, the market is completely ignoring things like record U.S. trade deficits and the widening current account deficit. It is also largely ignoring the possibilty of Fedral reserve rate cuts.Traders and investors are insted focusing only..
If the account increased at a market rate of 15% per year and inflation averaged 3% per year over the entire deposit period, determine the purchasing power in terms of year-zero dollars immediately after the last deposit in year 17. Year 0 = $5000..
Describe why the United States would subsidize short run cost of production for tobacco farmers in foreign nations. Do these practices guarantee the tobacco farmers a profit in short run?
terrorst attacks foster inability and may affect productivity over the short and long term. Do you think the september 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short-and/or long-term productivity in the Unite..
Create an annotated bibliography from your research with a minimum of eight (8) well-written APA-formatted entries and develop a two-page paper summarizing and contrasting the main arguments on both sides of the issue.
Comparative statement information for Douglas Corporation and Maulder Corporation, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.
A big level of international trade protectionism is required if developing nations are going to be able to industrialize and develop their own domestic industries in face of fierce foreign competition.
Smith identify that if the forward rate is lower than what interest rate parity indicates, the appropriate strategy would be to lend:
Which are preferable and why, fixed, flexible, or a mixture of the two exchange rates? What nations have officially dollarized their economies. How does United States benefit from it?
A study conducted by the Moscow-based management consulting firm Strategy Partners found that the average labor productivity in Russia is only 17 percent of labor productivity in the United States. What factors would cause U.S. labor productiv..
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