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After the unification of the East and West German economies in 1990, the East German mark (EDM) was replaced by the West German mark (DM). A contested issue in the debates over the terms of unification was the rate at which the EDM and DM were to be exchanged for each other. Some argued that DM 1 must be set equal to EDM 2, while others favored a one-to-one relationship. In the end, the government of Germany decided to apply the DM 1=EDM 1 exchange rate for the first 3000 Eastern marks that each former East German citizen wanted to convert and maintain an exchange rate of DM 1=EDM 2 for any additional amounts of EDM offered for exchange. Suppose the German government had decided to apply the 1:1 rate to all East German marks.
Assuming that all other policies as well as production levels would have remained the same, compared to what actually happened to the dollar-DM exchange rate, the dollar value of the DM?
Prepare a briefing on why socialized medicine has not been the government healthcare system in the United States.
Fixed costs of production in the short run: Marginal cost can be defined as the: Which of the following is true under conditions of pure competition?
If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?
Wing Air, Inc. has a project with the following cash flows:
The state of California has a chronic budget deficit. In 2009 and 2010 the state has raised taxes and fees and cut spending
Consider the utility function U(X,Y)=30X^.8 Y^.2. Explain why these points are unique on this indifference curve. Please use at least 3 properties of indifference curves and any of the assumptions regarding utility to justify your response. Your resp..
Why does equilibrium real GDP occur where C + Ig = GDP in a private closed economy? What happens to real GDP when C + Ig exceed GDP? When C + Ig is less than GDP? What two expenditure components of real GDP are purposely excluded in a private closed ..
Flotation costs on equity is 15%, on debt is 5%, and on preferred stock is 7%. What is Slopes United's weighted average flotation cost?
What impact will flexible work schedules potentially have on employees' commitment to their employers?
Consider the market for natural gas with the following market demand and market total-cost functions: D : P(Qd) = 120 - 0.02Qd; C(Qs) = 25,000 + 60Qs.Q is weekly production in cubic meters (m3), and P is price in cents per cubic meter (so is the cost..
Angola economists are working on the country's figues. Find the (a) GDP deflator (b) Nominal GDP (c) Real GDP (d) what is the growth for Angolan GDP for 2013? If the 2013 price is $10, quantities = 50 million; While the year 2000, which is the base y..
Would the balanced-growth path of output per worker for the economy shift upward, shift downward, or remain the same if capital were to become more durable (i.e., if the rate of depreciation on capital were to fall?)
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