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Show transcribed image text The US has experienced large and growing current account deficits for more than 20 years, whereas Japan has experienced large and growing current account surpluses for roughly the same period. The US economy has grown at faster rates than Japan's over the past 10 years. Use the relationship between the current account and GDP to explain the difference in growth rates between the two economies. In trade negotiations with the Japanese over the large US trade deficit with Japan, the US administration has urged the Japanese government to undertake a more expansionary fiscal policy. Explain how this might affect the US trade deficit with Japan
Suppose that all wages also prices in an economy are indexed to increase. Explain there can still be an increase tax.
Because a steep demand curve indicates prices can increase quickly when the quantity demanded rises only a little bit, steep demand curves represent goods that are very elastic. When price controls are implemented, one group wins at the expense of th..
Indian GDP in 2010 was 78.9 trillion rupees, while U.S. GDP was $14.5 trillion. The exchange rate in 2010 was 45.7 rupees per dollar. India turns out to have lower prices than the United States (this is true more generally for poor countries): What i..
Christopher notices that his Discover Card statement gives the company’s Web address (Discovercard.com) and directs him there to pay his bills and answer his questions. What e-business strategy is Discover employing with this reference to its Web sit..
Suppose that a consumer’s demand for a product is given by P = 80-2Q. A monopolist produces the product at constant marginal cost, where MC = $6. The firm has no fixed costs. What value of T and P should the firm choose if it wants to maximize its pr..
Find the Backward Induction solution of the game. How would the answer change if we reversed the roles of player 1 and 2 in the first two rounds of the game in c?
Explain how a bank's ability to create transaction deposit accounts through loans creates money. Corben Inc. has a successful brand with the name Crunz. The market size in which Crunz competes is $4 billion, and Crunz has generated sales of $400 mill..
HOW can different investment vehicles affect the risk and returns of the pension fund? What are the pros and cons of using international investment vehicles, real estate, and alternative asset vehicles in a pension investment portfolio?
Conditions that exist when they shut down their operations and the conditions that exist when they resume their operations.
In which of these instances is demand said to be perfectly inelastic. Elucidate is demand curve is horizontal.
Using the specific-factors model, elucidate why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital-abundant country.
Explain how many hamburgers does Ron produce. Illustrate what price does Ron charge for a hamburger.
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