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1. True or false: If a country is a net debtor to the rest of the world, its international investment service account is in deficit. Explain your answer.
2. Choose a country and analyze its balance of payments for the past 10 years. Good sources of data include official bulletins of the statistical author- ity of a country or its central banks; International Financial Statistics, which is a publication of the IMF (www.imf.org); and Main Economic Indicators, which is a publication of the Organization for Economic Cooperation and Development (www. oecd.org).
a. Examine how trade in goods and services has evolved over time. Is the country becoming more or less competitive in world markets?
b. Consider the relationship between the country's net foreign asset position and its international investment income account.
c. If the country has run a current account deficit, what capital inflows have financed the deficit? If the country has run a current account surplus, how have the capital outflows been invested?
Can you please provide an example of the market where government has imposed a price ceiling or a price floor and use demand and supply analysis to elucidate the consequence on that market.
1. use the model of supply and demand to explain how a fall in the price of frozen yogurt would affect the price of ice
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Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price
Assume a nation has been running a significant expansionary fiscal policy for many years.
Drugs 'R Us operates a mail order pharmaceutical business on West Coast. The company receives an average of $325,000 in payments a day.
Assuming the phone company has to charge the same monthly rental fee and unit price to all its customers, at what level should it set these charges?
For each of the following events, state whether the aggregate demand curve would increase, decrease, or stay the same.
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