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Exchange rate and BOP relationship. What happens in the case: Current account deficit of $500 billion, financial account surplus of $300 billion? Ignoring statistical discrepancy, Show in words and a graph what will happen in the following two cases?
1) The exchange rate system if flexible where market supply and demand determines exchange rate.
2) The system is fixed exchange rate system. What should the Central Bank do to restore the balance of payment?
Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).
Many countries in the European Union use the same currency: Euro. Should the US, Canada and Mexico similarly use the same currency? What are the pros and cons of using the same currency if all three countries use it? Will the US benefit from such as ..
identify a time in your life when you had to make a personal or professional decision such as buying a home changing
Sketch the ppf ’s for both countries.d. Assuming no trading between the two, if both countrieswanted to have equal numbers of feet of timber and basketsof fruit, how would they allocate workers to the two sectors?
please answer all 3 questions using apa 6th edition format style site any paraphrasing or quotes that are used in the
Presume that the economy has the following production function: Y/L = 8*(K/L) 0.5. Further presume that s = 0.2, gL = 0.3, and δ = 0.1. What is the value of the steady state capital-to-labor ratio?
nbsp 1.given the accelerationist phillips curve - 0.3 u - 6 suppose that inflation in the preceding period was 3
Beer and pizza are compliments because they are often enjoyed together. When the price of beer rises, what happens to the supply, demand, quantity supplies, quantity demanded, and the price in the market for pizza.
government introduced an earned income tax credit. This reform has been considered controversial. a. Analyse the likely effects of the tax credit. b. What are the arguments in favour of the tax credit
define the following termsa. gross domestic product gdpb. realnbspgdpc. national incomed. gdp deflatordescribe how the
Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase i the demand for potatoes Which good if inferior and which is normal How will the equilibrium price and quantity change for each good
You own a company. You have just been tasked with making the company more socially responsible. What issues must you address to satisfy the employees, stockholders, customers, and community
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