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Define and explain the interest parity concept using formal methods Explain IS and LM curve behavior and nominal interest rate in the domestic economy, and then to the exchange rate between the domestic economy and the rest of the world in the following situations. A weaker currency means it takes fewer foreign currency units to buy the domestic currency. (1) the domestic government increases spending 2) the domestic central bank decreases the money supply, 3) the foreign central bank increases.
What is business cycle? Describe the four phases of the business cycle. Where on the business cycle do you think the U.S. economy is today?
Marlene will live for for more time duration. In the current period, she has the option of attending college.
Describe a long-term contract shoeing all necessary steps that the current supplier can offer the buyer that will be attractive to the buyer and will also strengthen the incumbent's monopoly power.
Explain why did the Fed begin to raise interest rates at a point in the economic recovery with concerns over terrorism and rising energy prices causing great uncertainty.
Explain how would you classify the product in terms of it's income elasticity.
A firm in an oligopolistic company has the following demand and total cost equations Maximum quantity at which profit will be at least $850.
Illustrate what economic forces and mechanisms work to maintain trade equilibrium. How does the balance of trade impact business decisions.
Use both an individual's indifference curve and budget line, and the aggregate labor supply curve to explain and illustrate your answer.
Illustrate what are some polices the U.S. government could take to increase U.S. economic growth.
Describe the relative impact that every variable has on the demand. What implications do these results have for the firm's marketing and pricing policies.
Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
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