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Principles of Macroeconomics 1. If the net capital outflow of the United States decreases, does that move the supply or demand of domestic loanable funds? Which direction? Why?
2. If citizens of the United States decide to save more money, will that strengthen or weaken the dollar? Describe the chain of cause and effect that links the savings decisions to the real exchange rate.
3. Explain why the demand for dollars is inversely related to the real exchange rate.
4. Is the net capital outflow increasing or decreasing in the domestic real interest rate? Why?
Treasury and Commerce departments. c. Board of Governors. Federal Open Market Committee. d. House and Senate.Fed buys a T-bill from a commercial bank, how will it pay for the T-bill? It will give the bank new reserves.
At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm's marginal cost curve
Problem: Use the data in WAGE2.RAW for this exercise. (i) Consider the standard wage equation
what are the three macroeconomic goals? find an article that shows a connection between a current event and two of the
Supply and demand show the relationships between two main variables, price and quantity. How are they depicted in demand, and in supply? What other factors impact the relationships between price and quantity in supply and demand? Which factors are..
China pegs the yuan to the United States dollar at 8.3 yuan each dollar. Assume that this is above the equilibrium level of dollar in foreign exchange market.
Illustrate the difference among the law of diminishing marginal returns and the law of diminishing marginal rate of technical substitution.
As in the case of oligopoly markets, rivals may select to compete aggressively, non-aggressively or in non-price dimensions.
because of the great recession applications to the supplemental nutritional assistance program snap soared.the program
The relative price of tea in terms of Civics increase or decrease. Illustrate what about the relative price of Civics in terms of tea.
Draw indifference curves to represent the following types of consumer preferences-I like peanut butter, but neither like nor dislike jelly.
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
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