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Question: 1. (PPP) "Some fast-growing poorer countries face a conflict between wanting to maintain a fixed exchange rate with a rich country and wanting to keep inflation low." Explain the logic behind this statement. Use the examples of Slovakia and China to illustrate your argument.
2. (UIP) What is a peso problem? In the case of fixed exchange rates, explain how peso problems can account for persistent interest rate differentials. Study the U.S.-Britain short-term (end-of-month) nominal interest rate differentials shown below for the year 1896 (from NBER series 13034). Both countries were on the gold standard at a fixed exchange rate of $4.86 throughout this year. Did the United States have a peso problem? When did it become really big? When did it go away? (Extra Credit: Do some research on the Web and discover the political reasons for the timing of this peso problem.)
What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks? What is the role of the simple multiplier [ 1/{1 - MPC(1 - t) - m}] in stabilization of the swings in real GDP?
1) What is gross domestic product (GDP)? 2) What is considered a healthy growth rate? 3) What does the current growth rate mean for the U.S. economy?
a. At first, only a few people use the service. What type of good is this and why b. Eventually, as more people find out about the service and start using it, the speed of the connection begins to fall. Now what type of a good is the wireless inte..
describe how the budget constraint of a household in a two-period model is affected by each of the following changes.
What are the short- and long-term economic benefits and costs associated with our current high federal government budget deficits Do you think the economic benefits outweigh the economic costs, or not If we wished to reduce the budget deficit then h..
Elucidate what does the US government hope to achieve through the use of its antitrust policy.
The problem is related to economics, particularly to macroeconomics and it is An essay on Market imperfection associated with negative externalities.
You are the manager of a firm that manufacturers front and rear windshields for the automobile industry. Due to economies of scale in the industry
Name the state or nation that has the leading GDP as compared to all the worlds nations and states?
Some economists argue that the government intervention makes the economic outcome even worse. Some argue that there are important economic roles of the government. What is your opinion? Does the government do good or bad? Briefly discuss.
You must select between sports training or working full time. If you choose sports training, you will have less of a social life. You will also pay $20,000 A year for training, but you will get $15,00 grant.
"The Smiths had assumed that large volume would bring profits through lowering unit costs." according to one company report, "The more paint and varnish we sold, the more money we lost." Draw an average cost curve showing the relationship between ..
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