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When a country's central bank decreases the money supply, which of the following best predicts the consequences? a. Its price level rises, and its currency appreciates relative to other currencies in the world. b. Its price level falls, and its currency appreciates relative to other currencies in the world. c. Its price level rises, and its currency depreciates relative to other currencies in the world. d. Its price level falls, and its currency depreciates relative to other currencies in the world
Elucidate what are some measures of total ouput on the horizontal axis of the AS/AD model. Which measure do you think represents the most accurate picture of the output of an economy.
Price Discrimination (PD) occurs "when a firm charges different prices to different customers for the same good". Explain under what conditions PD is possible and profitable?
Assume a different role and provide a perspective that differs from your colleague's perspective.
Y= C + I + G + (X - IM) where:C = 400 + 0.8Y, I = 50, G = 100, X = 50, IM = 100 And also:DI = Y - T + Tr, T = 50, Tr = 150, YF = 5000 Suppose the President and Congress choose to eliminate the output gap by using discretionary fiscal policy and focu..
Re-creating the U.S. Federal Budget based on one of the Economic School of Thought
Describe qualitatively how the coffee shop owner should change the drink sizes (and then the prices) to increase profits even further.
It consumes two counting numbers: one that represents the speed of a car and the other one the speed limit of the road. The result is one of these strings: (1)"fine"for a car that goes below the speed limit; (2)"danger"for a car that is going at m..
Why other countries have high MPC and also have low maltiplier while the role says the higher the MPC the higher the maltiplier?
Suppose Frank and Sarah are unsure about what the CPI will be in two years. How should Frank index Sarah's annual repayments to ensure that he gets an annual 2
Suppose you borrow $100 of principal that must be repaid at the end of two years, along with interest of 5 percent a year. If the annual in flation rate turns out to be 10 percent, (a) What is the real rate of interest on the loan?
What is the economic meaning of economies of scale and how does it affect the operations, productivity, and competitiveness of firms?
What is the basic objective of monetary policy? State the cause-effect chain through which monetary policy is made effective.
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