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A country is always worse off when its currency is weak (falls in value). Is this statement true, false, or uncertain? Explain your answer.
Suppose the U.S. economy is in a recession which came from a negative AD shock. To provide consumers with an incentive to spend more of their disposable incomes, Congress and the President pass a law making it illegal for an individual to hold more ..
A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decreas..
Classify the following utility functions as risk averse, risk neutral or risk seeking and draw the relevant diagrams
Discuss the impact on wages, employment in the industry, and the economic welfare of the following input market structures. In which case will the deadweight loss be the smallest?
Our economy is currently in recession so let's discuss how discretionary Fiscal Policy can help the situation. Please explain why tax cuts may be needed now and why we see budget deficits going up during the recession
Pace Automation Corporation in Cookeville, Tennessee must choose the better economical alternative between the two listed below. If 1,000 units are required per year, which alternative is economically attractive? Assume that the life of the automa..
Your company is considering an investment project that will generate after-tax cash flows of $1,000 per year for the next three years (and then be scrapped, with no salvage value).
The firms and workers in Alpha form expectations adaptively. The firms and workers in Omega form expectations rationally. Their otherwise identical economies are initially in equilibrium at the natural level of output with 10 percent inflation.
Your company needs a small front-end loader for handling bulk materials at the Wideplace plant. It can be leased from the dealer for three years for $4050 per year including all maintenance. It can also be purchased for $14,000. You expect the ..
If Greece leaves the Euro zone there will be macroeconomic consequences. The possible collapse of the Euro zone acts as a shock to sellers around the world worried about international economic stability. Show the short run impact of such an event..
Some company have an advantage of being alone in their industry/market. What might that organization do to maintain that situation.
In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.
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