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Question: The flow of funds from country to country is a major theme on the AP test.
(a) List three reasons why funds would flow from the US to another country (or vice versa). With each of your reasons, explain why the money would be changing locations.
(b) When money leaves the US, how does this impact the value of the US currency? Draw how this would impact the dollar in the foreign currency market (use the Euro as the comparison currency).
(c) Lastly, explain the difference between the capital and current accounts and give one example of something that would fall in the current account and one thing that would fall in the capital account.
Analyze how this sales forecast impacts all other forecasts for the firm, such as materials, labor, overhead, cash receipts, and disbursements.
A consumer has preferences over goods x and y. The utility function is U=sqrtx + sqrty. The marginal utilities are MUx=1/(2sqrtx) and MUy=1/(sqrty). Calculate MRS and determine if it is diminishing for this utility function. Does the indifference ..
(Part A) Evaluate the fundamental arguments between Keynesians and Monetarists concerning the level of government involvement in our economy to minimize the impact and stabilize the different stages of the business cycle.
Define time allocation, and list at least three activities you personally invest time in for each of the distinct uses of market work, nonmarket work.
Suppose a monopoly manufacturer sells directly to a monopoly retailer. What are the implications in regard to price, output, and profits as compared to the case where the monopoly manufacture and monopoly retailer merge? Explain why
Assume that you want to minimize your total cost of completing 1000 units of work. How manyworkers would you hire and how much would you pay each of them.
The city of Bookburg initially allows only one book store, which sells books at a price of $20 and an average cost of $11. Suppose the city eliminates its restrictions on book stores, allowing additional stores to enter the market. According to an..
Maggie's utility function is and her income is $5000. Then her MRS at generic bundle (x1, x2) is 50-0.25x1. Commodity 2 is a composite good, and hence its price is unity.
Which variables typically are negotiation points in an LDC multiyear restructuring agreement (MYRA)? How do changes in these variables provide benefits to the borrower and to the lender?
If there's upward pressure price, how does this affect the supply side of the market?
Suppose that Mr. Greengenes, a farmer and genetic engineer, develops a new method for growing corn that decreases the cost of growing corn by $300 per acre. Greengenes’ landlord rejoices, saying, “According to the leftover principle, you will pay me ..
assume you are the plant manager for crossroads sign company which produces road signs in a market that approximates
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