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A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary and fiscal policy should they choose? Briefly explain your logic
Suppose the price of clerical time remains at $7.50 per hour. How high would the price of an hour of computer time have to be before the firm would find it worthwhile to use only clerks to process the payroll?
One example of how a bank can practice asset management in order to reduce liquidity risk is
Suppose that a 10% decrease in the price of a product has resulted in a 30% increase in the quantity demanded for a product. Is demand elastic or inelastic in this price range? Explain and demonstrate using the elasticity formula.
Suppose there are two types of drivers on the road. Speed Racers have a 7% chance of causing an accident per year, while Low Riders have a 2% chance of causing an accident per year. Suppose the insurance companies know with certainty each driver’s ty..
How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer. How does the price elasticity of demand for gasoline imp..
Assume that a price-taking firm in the wheat industry has typical U-shaped SAC and AVC shortrun cost curves and an upward sloping SMC curve. Describe the short-run supply curve for this firm. What is the shutdown price for this firm?
What is organizational culture? What effect does it have on a organization.. Include in your rescission the positive and negative aspects of culture in an organization
Explain how the Typical Firm also Industry Delivery also Demand to analyze the impact of this tax.
Why does the government intervene in the economy? Should they and what would the impact be if they did not?
Offer some reasons why U.S. firms might prefer to direct their DFI to Mexico rather than Canada.
A binomial process has 892 trials and a probability of success of .78 what is the standard deviation of this process distribution?
If I spent all my money ($450,000) on a new house I could buy a house with 4500 square feet. I settle for a 1500 square foot house. (Each square foot costs the same.) The day after I close the deal a nearby nuclear power plant is condemned and the va..
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