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Suppose that real money demand temporarily falls. Using diagrams and explanations, show the short-run and long-run effects on the foreign exchange value of the country's currency, the country's interest rate, and the country's price level.
In the discussion of exchange rate overshooting, we assumed that real output (Y) was held constant. Assume instead that an increase in the money supply causes real output to increase in the short run. How does this affect the extent to which the exchange rate overshoots its long-run value when the money supply first increases? Is it possible that the exchange rate undershoots its long-run value?
Explain the problem of time lags in enacting and applying fiscal policy. What is the difference between the national debt and a budget deficit? How does the crowding-out effect relate to fiscal policy?
You have entered into a contract to purchase new house, and the closing is scheduled for next week. It's typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. pre-sign all the closing do..
The residential real-estate market played an important role in the economic meltdown in 2008. What were the driving forces behind this collapse and do you think that this is something that meltdown has shown to authorities (Federal Reserve, Wall Stre..
q1. visualize you are a manager for good or service used. from results of the deterioration equation recommend
Suppose that a manufacturing firm in New Jersey, we found that Average variable cost = $10. If the firm's pricing strategy is to add a 25% m on cost, what price should ark up, what price should the company charge?
Consider a market whose supply and demand curves are given by P = 4Q ^S and P = 12 - 2Q^D. Calculate the equilibrium price and quantity (P* and Q*) assuming the market is unregulated. What is the total surplus at the equilibrium? Calculate the price ..
Suppose the inverse demand for coal is estimated to be P = 75 - 0.6Q, where P is the price of coal and Q is the quantity demanded. The supply of coal is given by P = 0.3Q. Suppose coal mining produces an external marginal user cost. This cost equals ..
Show the impact of this rise in oil prices on aggregate supply in the aggregate demand and aggregate supply diagram to the right, and be sure
How do we measure efficiency in economics? Meaning we are getting more efficient but how is it measured?
Explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples.
How do I find the change in unemployment rate? Population is the same at let's say 80 million between 2014 and 2015. Unemployment rate for 2014 in 5.4% and for 2015 it is 4.3%. Then what is the change in unemployment rate between these two years? Is ..
Many people believe trade deficits are a serious problem and need to be eliminated. Explain the three actions the Fed could take to reduce the trade deficit in the U.S., and explain carefully how these actions would result in a reduced trade deficit.
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