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Consider a small open economy that maintains a fixed exchange rate. Explain what effects a reduction in the interest rate that prevails in world financial markets would have on each of the following domestic variables after the economy has adjusted to a new equilibrium:
a. Real GDP
b. The domestic interest rate.
c. The central bank's stock of foreign exchange reserves
d. The real exchange rate
e. The current and non reserve financial accounts of the balance of payments
Point out which costs in the preceding question are considered "relevant" and which are considered "irrelevant" to a business decision. Explain why.
If the marginal profit is negative for the sale of a certain number of units of a product, is the company that is marketing the item losing money on the sale? Explain.
Discuss how your expected and disposable future income, after receiving your college degree, may change your saving and investment decisions and transactions in the loan able funds market
Illustrate what problems would occur if the managers of each division were given incentives to maximize each division's profit separately.
If the demand for housing falls, reducing planned investment by $75 billion, what is the effect on national income and output (GDP) (the consumption function is c = 50 + 0.7 (yd)) Wouldn't this answer just be GDP will be reduced by 75 billion? I am n..
Which of the following possibilities is consistent with the property of diminishing marginal product.
A pharmaceutical firm has a monopoly on a new class of vasodilator. The market demand is given by P=240-0.01*Q, and thus MR=240-0.02*Q. The monopolist's marginal cost is constant and equal to 20. Calculate the profit-maximizing price.
q1. the government is involved in providing many goods and services. for each of the goods or services listed determine
There has been a great deal of controversy over the Affordable Care Act, also known as ObamaCare. In your textbook, there are three methods described that most Americans use to evaluate political developments such as ObamaCare. Using those three meth..
What decision (abroad or domestic) should be reconsidered to create better entrepreneurial opportunities in the future
According to the rational choice model, cash grants are preferred to food stamps because
Utilizing a graph of equilibrium in the housing market, describe carefully which parties win and which parties lose from rent control.
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