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Coffee is one of Honduras' main exports. Assume that coffee prices fall because of a drop in world demand.
a. Assume that Honduras fixes the value of its currency, the lempira, to the dollar. Provide one method that Honduras could use to fix the value of its currency when coffee prices fall.
b. Will the fall in coffee prices decrease Honduran GDP more if Honduras has fixed exchange rates or flexible exchange rates? Why?
Use an aggregate supply-and-demand diagram to show what would happen to an economy in which the aggregate supply (AS) never moved while the aggregate demand curve shifted outward year after year? (Make sure to state or show what happens to GDP and pr..
Can anyone recommend a resource for very long term trade data? (1500-2014). I have looked and found bits and pieces here and there but haven't come across any single data-set covering all of it. I am thinking of mashing my own together but I really d..
Does Economic Growth Always Lead to Inflation? Why or why not? Please cite sources.
Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop.
1. Using the above information, explain and illustrate the factors which caused a rise in the price of baked beans.
When we discussed the stagflation of the 1970s. We argued that policy makers should have acted more aggressively with expansionary policies the fight thr recessions that occurred during that time.
Essay Capstone Market Structure (make-up industry) compare and contrast your industry to each of the three characteristics of the market structure you chose and
Imagine a watch making firm has a cost function of C=2q2 +10. a. If each watch is sold at $100, how many should the firm sell?
Determine equations for P=f(Q), MR=f(Q), ATC=f(Q, Q2), AVC=f(Q, Q2), MC=f(Q, Q2). Recall that your marginal equations should be derivatives of your totals!
A firm expects to earn $14,000 a year on $112,000 investment. Calculate the expected profit rate. Show work. This firm would be willing to make this investment provided the interest rate is lower than what?
1. Suppose the demand for sunscreen (X) has been estimated to be ln Qx = 5 - 1.7 ln Px + 3 ln S - 3 ln Ay, where S denotes the average hours of sunshine per day and Ay represents the level of advertising for good Y.
Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 150 items per hour. What if you assign t..
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