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Give 3 reasons why the average person in Virginia is wealthier than the average person in Haiti. (Use the wealth equation) Give one advantage that people in Haiti have over people in Virginia. Why does this advantage not make them wealthier than people in Virginia?
Assume foreign income rise to 108,000 and interest rate is allowed to temporarily diverge from world economy interest costs. What are the equations for IS and LM curves?
Dicuss and describe the factors that determine who actually bears the burden of a tax increase on a specific goods, such as gasoline, cigarettes, or some other item.
If the demand for a domestic currency reduces in a country using a fixed exchange rate system, determine what must the central bank do to keep the currency value steady?
Describe why the United States would subsidize short run cost of production for tobacco farmers in foreign nations. Do these practices guarantee the tobacco farmers a profit in short run?
The European Union has heavily sheltered its farm sector through import duties; in addition, Union subsidizes its exports of agricultural items. If cropland is regarded as a factor of production.
During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash. How would you expect such a shift away from checkable deposits
Assume that each United States worker can produce eight units of food or two units of clothing daily.
Suppose a year ago you invested in the stock of Dutch company, Nethercom, Inc. At that time you paid 50 euro per share of stock. Over the past year the stock increased in value by 20% and at the same it paid 2.5 euro per share.
Some politicians have suggested that the U.S. enact a constitutional amendment requiring that the federal govt balance its budget annually. Explain why such an amendment, if strickly enforced, would force the govt to enact a contractionary fiscal ..
In 2008, the per capita consumption of coffee in the United States was reported to be 4.2 kg, or 9.24 pounds. Assume that the per capita consumption of coffee in the United States is approxi- mately distributed as a normal random variable
The U.S dollar price of a Swedish krona changes from $.1572 to $.1730. a. Has the dollar depreciated or appreciated against the krona b. Has the krona appreciated or depreciated against the dollar
Using the S/D of $ and S/D of ¥ (yen), answer the following questions. Make sure to draw both graphs. a. What happens to the p (price) and q (quanity) of $ and of ¥ when the Japanese demand more ipods b. What happens to the p (price) and q (quanity) ..
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