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Please paraphrase this paragraph
"As the reference value rises and falls, so does the currency pegged to it. Many developing economies and some emerging markets use this system today. For example, China pegs its currency to the value of a basket of currencies, and Belize pegs the value of its currency to the U.S. dollar. To maintain the peg, the governments of these countries intervene in currency markets to buy and sell dollars and other currencies, in order to maintain the exchange rate at a fixed, preset level. A foreign debt crisis arises when a national government borrows an excessive amount of money, either from banks or from the sale of government bonds. For example, China's total foreign debt now exceeds $200 billion. However, the debt is manageable because China has a huge reserve of foreign exchange. By contrast, Argentina's foreign debt has reached roughly 150 percent of the country's GDP. In an effort to pay its debt, Argentina must use financial resources that it might have invested instead in important national priorities. Indebted governments draw huge sums out of their national money supply, reducing the availability of these funds to consumers and to firms attempting to finance business activities ".
Elucidate how it is possible that we have "sustainable development" (as it is defined in text book) in a world in which minerals, oil and or non-renewable resources are being depleted.
Consider a public project to build a bridge. The government is deciding whether to undertake it or not. Let k = 1 if the bridge is built and k = 0 if the bridge is not built. The cost of building the bridge is C = 97. Assume the government knows θ. F..
Suppose Chase opens a monopoly drink stand. He has two types of customers. Customers of type A have a demand function Qda= 5-P and customers of type B have a demand function of the form Qdb= 10-2P. Assume Chase has a constant marginal cost of 1 for p..
Mark Carney, Governor of the Bank of England.Now that the referendum has passed the Governor has made additional public statements that hint at Bank of England monetary policy. What did he say? (proper quotes and dates) How do his statements translat..
What percentage of this loss will the insurance company pay? How much of the loss will George and Nancy have to absorb?
Illustrate what are the advantages and disadvantages of acquiring inputs through this means. Give example not used in the textbook that uses this method of processing.
A reduction in monopolist’s fixed costs would:
Illustrate and explain using a diagram, the difference between the Keynesian and monetarist views on how changes in interest rates affect changes in aggregate demand.
Your brother has decided to purchase a new automobile with a hybrid-fueled engine and a six-speed transmission. After the trade-in of his present car, the purchase price of the new automobile is $30,000. This balance can be financed by the auto deale..
A liter of gasoline in Canada costs about 1.03 Canadian dollars. Explain how this information entails two unit-of measurement problems for a typical U.S. citizen stopping to buy gas in Canada who wants to know how much the gas “really” costs.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated p..
Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it. (southwest Airlines)
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