Assume a country that basically consumes

Reference no: EM1337491

Assume the government cuts its purchases by $120 billion. As a result, the budget deficit is reduced by $40 billion, private domestic saving decreases by $10 billion, disposable personal income decreases by $80 billion and the trade deficit is reduced by $15 billion. By how much has national income (Y) changed?

. Using demand and supply analysis to assist you, what are the effects on the exchange rate between the British pound and the Japanese yen from:
a. an increase in Japanese interest rates?
b. an increase in the price of British goods?
c. an increase in British interest rates?

Consider a country that initially consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is $40 per pair before a ban on importing them is imposed. Use a graph to explain what happens to the price of shoes and the quantity of shoes consumed after a total ban on imports.

Reference no: EM1337491

Questions Cloud

Describing the marketing mix- product : Describing the marketing mix- product and place and price and promotion

The characteristics of stock exchange : Determine the characteristics of that exchange which might have led the company to be listed there versus another exchange.

How may a business use the internet : How may a business use the Internet. Provide three examples with web links demonstrating your answer.

Regulating healthcare and government : Why might healthcare organizations require greater governmental regulation than companies in other industries.

Assume a country that basically consumes : Assume a country that basically consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is $40 per pair before a ban on importing them is imposed.

Explaining performance improvement project : Discuss a performance improvement project you have been involved in or had knowledge of.

Explain importance of marketing mix : Explain Importance of Marketing Mix and How has one marketing principle or idea affected how you view your role in your company

Information about dividend policy : Alcoa recently announced a new dividend policy. The firm said it would pay a base cash dividend of 40 cents per common share each quarter. For what types of firms would Alcoa's new dividend policy be appropriate? Explain.

Theories of change : What are five different models or theories of change?

User Account

All Pages