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Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks. Be sure to include an appropriate graph in your answer.
a) A fall in consumer confidence about the future induces consumers to spend less and save more.
b) The introduction of a stylish line of Toyotas makes more consumers prefer foreign cars over domestic cars.
c) The introduction of automatic teller machines reduces the demand for money.
why pepsis strategy of price reduction in 1930s was a right strategy while wang labs decision to raise price in 1990s
Suppose that instead of maximizing profit, the firm wants to maximize total revenue. Using algebra determine the optimal output, price, profit and revenue for the firm.
A city government is considering increasing the capacity of the current waste-water treatment plant. the estimnated financial data for the project are as follows: Calculate the benefit-cost ratio for this capacity expansion project.
you are reviewing your monthly budget and determine you have 60.00 to spend on either books or movies each month.
the next 3 parts to this question give changes that have occurred in the watermelon market.nbsp for each change in a
The nation passes a law requiring all employers to give their employees 16 weeks of paid vacation each year. Prior to this law, employers were not legally required to give employees any paid vacation time.
1. consider a macroeconomy was initially at equilibrium level of real gdp.nbsp using an aggregate supply diagram and
Describe the analogies used by Kao Tzu and Mencius to express their differing views on the nature of being human. Then, create an analogy of your own that you think accurately reflects what it means to be human.
1. if a firm best computer buys requires its customers to buy software from it whenever the customers purchase a
You inherit a package of call options on a stock currently selling for fifty three dollar. In a year, the stock could sell for anywhere between $40 and $80.
Using the firms marginal cost curve, compute the profit-maximization long-run supply curve for typical retailer. Compute the average total cost curve for the typical gasoline retailer, and determine that average total cost are less than price at the..
Farmer Bean is selling green beans in a purely competitive market. His output is $1,400 units, of which each has a marginal revenue of $2.50. What is his average revenue?
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