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In a free floating exchange rate regime, the demand and supply for a currency determine its price. For each of the following conditions, explain what is expected to happen to the demand and supply curve for the Australian dollar and therefore its equilibrium price.
Required:
a) The inflation rate in the US suddenly becomes much higher than the inflation rate in Australia.
b) Australia's national income increases at a higher rate relative to a stable growth rate in the USA.
A monopolististically competitive firm:
What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve.
a) Estimate the difference in average Verbal SAT scores between the two groups.
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The kinked-demand (Sweezy) model of an oligopoly is based on the assumption that:
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Sheryl spends all her leisure time and all her money on sailing. She doesn’t value leisure time if she can’t sail, and she can only sail if she has leisure time. How many hours will she work if she earns $20 per hour? Find a formula for her labor sup..
If the US federal income tax deductions for mortgage interest and state and local property taxes are eliminated (with no other change in federal tax laws), many taxpayers will have to pay more tax. Describe how the tax increases would be distributed ..
Calculate the cross elasticity of demand between Old Navy's sports shirts and Gap's sports shirts during February and March. Are the two companies
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