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Suppose that one Euro can be exchanged for 1.3 U.S. dollars and that one U.S. dollar can be exchanged for 80 Japanese yen. If these currencies can be traded freely with low transaction costs, what exchange rate would you expect between the Euro and Japanese yen? Describe the transactions that would occur if the Euro-yen exchange rate is higher than this amount?
Discuss the theory of efficiency wages and explain why it is profitable for companies to pay a wage rate higher than the equilibrium wage rate.
In 200 words Explain Cooley’s argument in “Genetically Modified Organisms and Business Duties” What would Cooley say about the activities of Monsanto and related in the case study “Monsanto’s
Consider a consumer who consumes two goods, x and y. He has Cobb-Douglasutility function given by U(x, y) = xy. Let the income of the consumer be 100.dollars. Price of x is $5 per unit and price of y is $10 per unit.MRS = y. What is the optimal consu..
Define benefit and cost externalities. Explain why situation involving benefit externalities tend to result in an under allocation of society’s scarce resources.
Clearly show on your graph the old equilibrium price and quantity and the new equilibrium price and quantity. Can you tell for certain whether the new equilibrium price will be higher or lower than the old equilibrium price?
q.1. find the sample correlation coefficient between x and y.2. how would you decide if a simple linear regression
The Keynesian model and the AD/AS model are similar in many ways and different in many ways. Show, in a few diagrams, how the slope of the AS curve affects the accuracy of the Keynesian model’s predictions about the results of an increase in autonomo..
Explain how and why each source is valuable and useful.
It has been argued that in the long run monopolistic competition is inefficient because
A company that specializes in online security software development wants to have $85 million available in 3 years to pay stock dividends. How much money must the company set aside now in an account that earns interest at a rate of 8% per year, compou..
What are the credit risks faced by retail banking
Once the economy reaches its potential output level, and the AD Curve, the SAS Curve, and the LAS Curve are all intersecting at the same point:
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