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Consider two identical countries, a and b, in our standard overlapping generations model. In each country, the population of every generation is 200 and each young person wants money balances worth 50 goods. Assume that the money of country a is the only currency that currently circulates in the two countries. There are $800 of country a money split equally among the initial old of both countries.
a. Find the value of a country a dollar and the consumption of the initial old.
b. Suppose country b issues its own money, giving £10 to each of the initial old of country b. To ensure a demand for this currency, country b imposes foreignexchange controls. Find the value of a pound and the value of a dollar. Find the consumption of the initial old in country a and in country b. Who has been made better off by this policy switch?
Over the past 50 years , Brazils population growth rate has average about 2.3 percent. According to the rule of 70, Brazils popluation will double in about ?
Explain how an individual's Demand curve for medical care will change (i.e., shift) if the following things happen (consider each change individually, holding all other possible influences constant.
The invisible hand theory which essentially says, people through pursuing their own economic self interest, help allocate resources in the economy as if an invisible hand is at work to do so.
Write-up for a case in macroeconomics and find a list of indicators for a number of emerging market economies
a monopolist has determined that marginal revenue is 2.00 and average cost is 1.75. it has also determined that the
a) If the Fed requires banks to hold 5% of deposits as reserves, how much in excess reserves does First national now hold b) Assume that all other banks hold only the required amount of reserves.
1. A wholesale distributor stocks and sells low flow toilets to contractors for use in commercial office buildings. The estimated annual demand for the toilets is 5,475 units. The estimated average demand per day is 15 units. The purchase cost ..
In recent years, the Internet auction firm eBay has sougth to make its auction technology the favorite of software programmers, and it has begun licensing its technology to other Web sites. The company's managers have pulicly stated
Some college students work only during the summer months because they feel they cannot work and attend school simultaneously. According to the U.S. labor department, during the school year these students are A. part of frictional unemployed. B. n..
At what price is revenue maximized, and what is revenue at that point? Identify the elastic and inelastic regions of the demand curve.
Make sure to discuss how Facebook has both impacted and been impacted by the technological and other changes that comprise a low-friction economy as well as in terms of supply and demand.
What is the something else that DeSoto argues is necessary for a capitalist economy to produce wealth? Choose and explain one example or counter example used by DeSoto to make his case.
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