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Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP.
a. Discuss why there are fiscal policy criteria for joining a monetary union.
b. For countries that exceed or are near these limits (e.g., Greece, Portugal, Cyprus, etc.), the EU imposes so-called “austerity” measures (such as increased taxes and reduced government spending). What is the rationale for imposing austerity measures and what are their likely macroeconomic effects (especially on growth)?
A tax placed on buyers of airline tickets shifts the
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
Discuss your power sources (and your co-owner of the property you two are trying to sell power sources) in this negotiation, and analyze how you can strengthen your power position
A program evaluation is the systematic examination of any activity undertaken by government to make a determination about their effects, both short and long term.
The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate the smallest integer price that would make a rm willing to produce a positive amount.
What is continuous linked settlement and how does it operate? What is a quotation and how does it work in cross currency?
If you were in this industry also there was an increased demand for the product which pushed up the price of goods
Assume for simplicity that a monopolist has no cost of production and faces a demand curve given by !Q = 150−P. Calculate the profit maximizing price-quantity combination for this monopolist. Calculate the monopolist’s profits.
Examine how the Federal Reserve controls the money supply. In a paper, formulate how the independence of the Federal Reserve should or should not be modified in any way. Support your conclusions with references to the textbook and other resources.
q1. you have 2000 to spend on entertainment this year. the price of a day trip t is 40 and the price of pizza and a
From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $12 million in withdrawals from other banks’ ATM machines. Based on this infor..
Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alternative B will cost $35,000 with an operating cost of $4,000 per year and a salvage value of $7,000 after 5 years. At an MA..
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