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1. What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too large? How does the "ratchet effect" affect anti-inflationary fiscal policy?2. What is the basic determinant of (a) the asset demand for money? Explain how these two demands can be combined graphically to determine total money demand. How is the equilibrium interest rate in the money market determined? Use a graph to show the effect of an increase in the total demand for money on the equilibrium interest rate (no charge in money supply). Use your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.3. Why is quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quotas for the world economy?4.Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping. Assuming a system of flexible exchange rates between Mexico and the United States, indicate whether each of the following would cause the Mexican pesos to appreciate or depreciate, other things equal:the United States unilaterally reduces tariffs on Mexican products.Mexico encounters severe inflationdeteriorating political relations reduce American tourism in Mexicothe U.S. economy moves into a severe recessionthe United States engages in a high-interest rate monetary policyMexican producers become more fashionable to U.S. consumersthe Mexican government encourages U.S. firms to invest in Mexican oil fieldsthe rate of productivity growth in the United States diminishes sharply
Illustrate what is the supply of dollars in the market for foreign-currency exchange. Write down your answer since you will need it to answer the next question.
What is the actuarially fair price of insurance? What price are individuals w/$5000 in the bank willing to pay for the insurance?3. Will those w/$5000 in the bank voluntarily purchase insurance?
Suppose that your production facility can only produce 1,000,000 pills per year. Illustrate what is your optimal price and quantity given the production constraint.
What is the difference between the national debt and privately held federal debt? Why is the distenction between the two important?
Calculate the breakeven value at the low price of the data item that you consider most likely to be unreliable.
Suppose that an increase in consumer confidence raises consumer expectations of future incomes and thus amount y want to consume today this might be interpreted as an upward shift in production function how does this shift affect investment and r..
The interest rate is 25% (0.25), and there is no inflation. Illustrate what is Mandy's optimal consumption in period 1.
Converse Elucidate how you might go about evaluating the rate of return for the new equipment.
if customers also purchased French fries and a soft drink, Wall Street Journal reported that company was hoping novel promotion would revive its US sales growth. illustrate what do you think disrupted McDonald's plans.
His parents claimed that hospital doctors administered excessive oxygen to the baby and that this caused the blindness.
Explain any additional variables that may improve the coefficient of determination. Based on the forecasting demand, determine whether Dominos should establish a restaurant in your community. Provide a rational and support for the decision.
Why would cash transfers typically be preferred by recipients over in-kind transfers? What are the pros and cons of each from a government perspective? Respond to at least two of your classmates.
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