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Large-scale wars typically bring a suspension of international trading and financial activity. Exchange rates loss much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face problem of deciding what the new rates should be. The PPP theory has often been applied to this problem of postwar exchange rates realignment. Imagine that you are British Chancellor of the Exchequer and World War I has just ended. Explain how you would figure out the dollar/pound exchange rate implied by PPP. When might it be a bad idea to use the PPP theory in this way?
How is the wording of an adverse opinion different from that of an unqualified opinion?
while costs are expected to increase from $20,000 in year 1 by $10,000 each year. If there is no salvage value at the end of 5 years, what is the annual equivalent worth of the project assuming a MARR of 12%
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..
On page 46, Dave talks about two kinds of losses from tariffs. To which two areas on the tariff graph do these losses represent?
In chapters nine through twelve of Cocktail Party Economics, Evie Adomait and Richard Maranta discuss the conditions required for competitive markets to be efficient, and write about those circumstances under which market outcomes are less than effic..
Define the assertions about account balances at the period end.
Suppose that the nominal rate of interest is 4 percent and the inflation premium is 2 percent. What is the real interest rate Alternatively, assume that the real interest rate is 1 percent and the nominal interest rate is 6 percent.
c.In order to enhance total revenue from selling oranges, would you recommend a decrease in price of oranges Why d. Calculate price elasticity of revenue; e.What would be the effect of a 3% increase in price of oranges on total revenue
suppose that some variable is growing at constant rate.a.nbspnbspnbspnbspnbspnbspnbspprove that the natural logarithm
A particular firm must pay $10 per unit of labor and $250 per of capital. the firms marginal product of labor is 80 and its marginal product of capital is 270. is this currently cost minimizing is not how should the firms adjust its input mix
However, because the saw is a mechanical device, not all the boards are 120 inches long. In fact, the distribution of lengths has a various of 0.64. The saw operator took a sample of 36 boards. What is the probability the average length of the sam..
Suppose that the government taxes (at the new set of prices P'x = 1, P'y = 2 ) the consumer an extra 1/2 dollar for each unit of x he buys beyond 70 units. That is no tax for x =70.
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