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If a country has a current account deficit, this is often referred to as a situation where the country is “spending beyond its means.” What does this phrase mean in terms of the simple Keynesian model? Does the existence of the current account deficit imply that the country as a whole is a dissaver (i.e., that saving is actually negative)? Why or why not?
From a geographical standpoint, why is SPACE so integral to the survival of Capitalism as an economic system?
The European Central Bank (ECB) has been known for setting strict inflation targets (in other words, the monetary policy has been oriented towards maintain price stability).
Which has a higher Y.T.M. and why? What would be the real return on bond A and B if the actual inflation rate is 3%?
Illustrate wage would a monopoly union demand. Explain how many workers would be employed under the union contract.
Answer this question based on the payoff matrix above for a duopoly in which the numbers indicate the profit from following either an international strategy or a national strategy. Refer to the above table. If firm A chooses an international strategy..
If I sell 22,000 units and my annual costs are technology=$5000, postage & handling=$1000, Misc=$3000, inventory=$2000, equipment=$4000, and overhead=$1000. What would my monthly costs be if my fixed costs are technology, equipment, and overhead.
Assume the longer the search goes, the lower price the consumer would pay for the good. Furthermore, assume there are diminishing returns to the search since it is harder to find even lower prices as the search continues; that is: p?(t) > 0. Without ..
The Department of Justice concluded that satellite radio is not a market in and of itself while reviewing XM and Sirius merger. What other kinds of competitors did the DOJ include in the market? Discuss.
What is the contribution margin per unit? What is the contribution margin ratio? What is the variable expense ratio? If sales increase to 1,001 units, what would be the increase in net operating income?
Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model: The destruction of 30% of the capital stock because of a natural disaster. A permanent incr..
Suppose a monopolist faces the following market demand: What is the firms marginal revenue and the desired amount of units of production to maximize profit?
Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Whi..
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