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Question 1: Define nominal exchange rate and real exchange rate, and explain how they are related. If the nominal exchange rate goes from 100 to 120 yen per dollar, has the dollarappreciated or depreciated?
Question 2: Describe the sources of supply and demand in the market for loanable funds and themarket for foreign currency exchange.
Compare and contrast the benefits-received principle of taxation to the ability-to-pay principle of taxation. Should sales and excise taxes be eliminated? Explain. Should the U.S. corporate profits tax be eliminated? Explain.
In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the ..
Why is a point below the production possibilities curve less efficient than a point on that curve?
In a recent article, a researcher reported that he had found the demand curve for kerosene to be upward sloping.-as the price of kerosene rose the quantity demanded of kerosene increased. Illustrate what questions might you have for this researche..
One of the impacts that can erode the standard of living is inflation. The gov't uses the CPI to measure inflation. What is the CPI? How is it calculated? What are the uses of the information?
In the short run, information about a perfectly competitive firm’s fixed costs is needed to determine both the profit-maximizing level of output and the amount of profit earned when producing that level of output.
karens performance pizza is a small restraunt in ny that sells gluten free pizzas karens very tiny kitchen barely has enoug room for the three ovens in which her workers bake the pizzas karen signed a lease obligating her to pay the rent for the t..
Discuss the correlation between GDP growth and health outcomes. Compare short-term trends vs. long-term trends. Why would this be an example of the fallacy of composition in health economics?
List and explain the different approaches to the trade cycle. Which one do you find more helpful explaining the trade cycle? Why?
The second rubric element to be included in this section is your analysis of information and data related to the demand and supply for your firm
Calculate the over all MC for the 1st 10 units of output also Specify where each successive unit will be produced.
Between 1970 and 1976, average inflation rate of Country X was about 35 percent per year. With that rate of inflation, prices would double about every ________ using the rule of 70.
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