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i. Suppose we were in a situation where the interest elasticity of investment is low, and money demand is very interest elastic. Explain the effect on the income of monetary and fiscal policy action. Which of the two policies is more effective?
ii. The Mun-dell-Fleming model takes the world interest rate r* as an exogenous variable. Let's consider what happens when this variable changes.
a. What might cause the world interest rate to rise?
b. In the Mun-dell-Fleming model with a floating exchange rate, what happens to aggregate income, the exchange rate, and the trade balance when the world interest rate rises?
c. In the Mun-dell-Fleming model with a fixed exchange rate, what happens to aggregate income, the exchange rate, and the trade balance when the world interest rate rises?
What will be the effects on aggregate surplus, consumer surplus, and producer surplus? What will be the deadweight loss created by the tax?
Describe how these technologies have changed the way accounting is performed at your organization or an organization of your choosing.
would these be true or false and why? -a consumer with positive marginal utility for each good will always choose a
What is "take up"? What is "crowd-out"? What does the evidence show about take up and crowd-out from Medicaid expansion? Why did Hawaii end its universal child health care program?
We always see the price of Gas Fluctuates from time to time. Write 2 pages explaining the role of the forces of supply and demand in this fluctuations.
Discuss the immediate effects of the following events ondemand or supply in each respective market. Assume eachmarket is perfectly competitive. Indicate if you think demandor supply will shift right or left. Discuss how any shift indemand or supply w..
In the 1990s Japan reduced its exports of automobiles to the United States by 28 percent. If you were the manager of a US car dealership, explain how would this affect your pricing strategy.
You've entered into a contract to purchase a 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. You have three options f..
There are two goods in the economy, anchovies (a fish) and bananas ( a farm product). Draw the economy's production possibilities before and after a natural disaster that lowers the banana harvest but does not affect anchovies.
Suppose if 100$ million in excess reserves are made available to banking system, by how much can the banking system increase the money supply?
Find the coef?cient vectors alpha and beta for the trapezoidal method. Find also the stability region of the trapezoidal method.
The Microsoft trial has been only one of the biggest investigations of antitrust behavior as the turn of the century.
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