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We know that individuals are not affected by inflation if income increases in the same proportion as prices do. This statement implies that the following budget constraints are the same:
M=xPx+yPy
2M= x2Px + y2Py
Find the s and y intercepts and the slope for both and graph them to show that they actually are identical.
Which of the following is likely to lead to a right shift in the supply curve of? cotton?
How would you go about determining whether innovation and the incentives for innovation are becoming more important factors in the performance of firms and industries?
Illustrate what is strategic portfolio management. What is the relationship between strategic portfolio management and project management.
Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli. Which tribe has the comparative advantage in spaghetti production? Which tribe has the compa..
Illustrate what is the mechanism by which an aggregate demand recession is transmitted from one country to another.
The price elasticity for rice is estimated to be -0.4 and the income elasticity is 0.8 . At the price of $0.40 per pound and a per capita income of $20,000, the demand for rice is 50 million tons per year. a. is rice an inferior good, a necessity, or..
Romans utility function os U(x,y)=6xy. The prices of goods x and y are $12 and $15. The indifference curve is tangent to his budget constraint, where he is consuming 20 units of good x. How many units of good y must he be consuming?
Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. What are the risks associated with pursuing such a strategy?
What is "crowding-in" effect? Explain the factors which determine the strength of the crowding in effect. What is "crowding out"? Why is it important in discussions of fiscal policy?
Show (and explain) the short- and long-run effects of a decrease in the money supply, on a graph of AS and AD, starting at the natural rate of output. Is money neutral?
Each of the following events will result in either an import or export to be recorded in the current account or the capital account of Vidinland, an imaginary small country in eastern Europe. For each one, say whether it will be a current account imp..
Suppose the dollar exchange rates of the euro and the yen are equally variable. Which currency, the euro or the yen, would you consider riskier.
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