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Using the IS/LM/BP model and assuming perfect capital mobility, explain : how a decrease in foreign income affects domestic output. how an appreciation of the domestic currency affects domestic output.
how will my answers change if supply was perfectly inelastic. If supply was perfectly elastic. If demand was perfectly inelastic. If demand was perfectly elastic.
Let us suppose that the consumer is choosing between beer and milk. The consumer will always prefer beer to milk. However, if the consumer has two choose between two consumption bundles having equal amounts of beer and different amounts of milk, then..
From the profit maximization perspective, under which condition does it make sense to expand the level of output in the short-run?
Suppose there are 100 identical firms in the perfectly competitive cement industry. Suppose the cement industry is a Constant-Cost industry. Find the short-run supply (QS) of the industry. Compute the consumer surplus (CS) and producer surplus (PS). ..
Bud Owen operates Bud's Package Store in a small college town. Bud sells six packs for off-premises consumption.
If the cost of plaster and labour is $9 per gnome, what is the lowest price of gnomes at which there is a positive supply in the long run? (Remember that in order for there to be a positive supply in the long run, producers need to get their money ba..
Suppose you are the manager of the bank that has $15 million of fixed-rate assets, $30 million of interest rate- sensitive assets, $20 million of rate-fixed liabilities and $20 million of interest rate -sensitive liabilities. Is the bank rate sensiti..
Consider a perfectly competitive firm that faces the following market demand and market supply curves: Find the profit maximizing output for this firm. What are profits? Suppose demand shifts down and the new market price is $1.50. What is the profit..
As the number of explanatory variables in a regression increases, the R of the regression
As the exclusive carrier on a local air route, a regional airline must conclude the number of flights it will provide every week also the fare it will charge.
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of $200 each year from..
Economy produces 1000 tonnes of apples, 2000 tonnes of oranges, and 3000 tonnes of banana, and the market prices (in 2015 dollars) are $3 per tonne, $2 per tonne, and $1 per tonne, respectively. In 2016, the production is 2000 tonnes for all three go..
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