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Suppose that China is pegging its exchange rate to the US dollar. What are the actions required on the part of the Chinese central bank in response to (a) a decrease in income in the US, (b) a decrease in income in China, and (c) contractionary (tight) monetary policy by the US Federal Reserve?
How would multiplying a positive constant to a linear demand function affect its own-price elasticity of demand? In particular, how would the elasticity of demand of \(Q_{x}=a+bP_{x}+cP_{y}+dI\) at a point compare with the elasticity of demand..
1. (T/F) Under the gold standard, countries that imported more than they exported had to pay for this with an outflow of gold to other countries. 2. (T/F) Currency markets influence exchange rates under a fixed exchange rate system.
Suppose that every driver faces a 1% probability of an automobile accident every year. An accident will on average cost each driver $10,000. Suppose there are 2 types of individuals:those w/$60,000 in the bank and those with $5000 in the bank.
Using the Demand and Supply model anpredict what could happen to demand or supply curves and to equilibrium price. Include the curves in response.
All stratified societies have groups of individuals that do not produce, but still receive a ‘cut' of the social surplus. How does Diamond (in his book) argue that these ‘privileged' individuals manage to convince productive members of society to ..
In 2008, box industry was perfectly competitive. The lowest point on long run average cost curve of each of the identical box producers was $4,
Suppose that the labor market is segmented into two industries: SlowGo and HiTek. Initially, both markets are in equilibrium and the same real wage clears in both markets. Managers learn the GWMacro consulting team about efficiency wages.
Explain why Canada should or should not take a leadership role in environmental practices and Fair Trade policies. This must be from a business perspective
Discuss the advantages and/or disadvantages of distributing marketable pesticide permits to each farm operating in the watershed equal to 40% of its current level of use of that pesticide, versus simply ordering each farm to reduce pesticide use t..
Discuss the advantages and disadvantages of adjustable-rate versus fixed-rate mortgages?
Which country has comparative advantage in producing cars? Which country has comparative advantage in producing helicopters - Which country has absolute advantage in producing cars? Which country has absolute advantage in producing helicopters?
Illustrate what are the pros and cons of switching to a market for kidneys. Currently, people can volunteer to donate one of their two kidneys, and getting a kidney is dependent upon your need and prognosis and sometimes having a relative who is a..
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