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When the Federal Chairman, Ben Bernake, announces a change in the interest rate, does the Federal Reserve directly or indirectly change interest rate? explain.
A geomatics engineer wants to purchased a highly accurate GPS surveying system. The unit costs $36,000, has a useful life of 5 1/2 years, and can be sold at the end of its life for $3,000. In addition, a maintenance and supplies payment of $1500 w..
Assume the Federal Reserve Board is undertaking anexpansionary monetary policy. Explain the detailsof how the expansionary Fed impacts each of the following:
Big interest rates are commonly expected to strengthen a nation's currency because they can encourage foreign investment in securities in that nation,
Discuss the use of Gross Domestic Policy (GDP) to measure the business cycle. Discuss the roles of government bodies which determine national fiscal policies.
Ilkka’s income is $120 and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $2 per unit.
Other things being equal, a rise in a country's terms of trade increases its welfare. What would happen if we relax the ceteris paribus assumption, and allow for the law of demand to operate internationally
Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month.
Will recessions starting in the US be more easily transmitted to Canada under a fixed or flexible exchange rate system. Use the appropriate graphs to illustrate your discussion.
The Millennium Development Goals aims were to be achieved by 2015. A few will be met; many others will not. In either case despite great progress, poverty will remain a serious ongoing concern.
Why the price of computers dropped as their power and features has have increased?
Describe pricing strategy to meet organizational goals.
Suppose that aggregate price level is constant, interest rate is fixed, and there are no taxes on foreign trade, how much will the aggregate demand curve shift and in what direction if the following events occur?
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