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1. Why might EMS provisions for the extension of central bank credits from strong- to weak-currency members have increased the stability of EMS exchange rates?
2. In the EMS before September 1992, the Italian lira/DM exchange rate could ?uctuate by up to 2.25 percent up or down. Assume that the lira/DM central parity and band were set in this way and could not be changed. What would have been the maximum possible difference between the interest rates on one-year lira and DM deposits? What would have been the maximum possible difference between the interest rates on six-month lira and DM deposits? On three-month deposits? Do the answers surprise you? Give an intuitive explanation.
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
A company produces two main products: electronic control device3s and specialty microchips. The average total cost of producing a microchip is $300; the firm sells the chips to other high-tech manufacturers for $550. Should the company produce con..
Describe by what percentage would a 10% rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.
Suppose that the economy is currently at potential output.Also suppose that you are an economic policy maker and that acollege economics student asks you to rank, if possible, your most preferred to least preferred type of shock:
Illustarte what are the main costs of production for the good or service your organization supplies. Breakdown the costs from the largest to the smallest.
Choose a market for a good in your area that seems to be a perfectly competitive market. Identify the buyers and sellers as well as the goods or services. How closely do real world conditions match the characteristics listed in the model
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Describe the provider's equilibrium salary and how many nursing units it will hire.
The fiscal policy makers of Leverett want to adjust taxes to maintain the exchange rate at its previous level. What should they do If they do this, what are the overall effects on saving, investment, net exports, and the interest rate
Do incumbent politicians utilize their power and influence to get re-elected. Is this a "valid" use of political power. How does this impact business firms. Please discuss.
Technological advance, that date has played a relatively small role in U.S. economic growth.
Use the data in the table to the right to answer the following questions. What is the external cost per unit of production? What level is produced if there is no regulation of the externality?
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