Currencies cause the trade deficit

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Q. Q1. How would I approach this problem? Assume that Kathy drinks coffee as well as tea as well as is in consumer equilibrium. The marginal utility of the last cup of coffee that she drank was 8, while the marginal utility of the last cup of tea she had was 7. If the cost of the tea is $0.70 per cup, what is the cost of a cup of coffee?

Q2. "Current Events - Terrorist Acts" Please respond to the following:
Select a recent terrorist act/attack (within the past six months). Describe the event as well as speculate about the purpose of the attack (from the perpetrators' point of view). How has the event changed behaviors or policies within the country attacked or its neighbors as well as allies?

Q3. Why might variations in the dollar's value in terms of other currencies cause the trade deficit to move independently from the changes in the government budget deficit?

Reference no: EM137656

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