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In an open economy, why is the demand curve in the foreign-currency exchange market downward sloping?
A. A depreciation in the domestic currency causes exports to fall and imports to rise and, therefore, net exports to fall.
B. A depreciation of the dollar reduces the quantity of dollars demanded in the market for foreign-currency exchange.
C. When the value of the domestic currency depreciates, domestic goods become less expensive relative to foreign goods, making domestic goods more attractive to domestic and foreign consumers.
D. Net capital outflow equals net exports.
Illustrate what do economists call the percentage change in real GDP from year to the next. Under a business agreement 70/30 why should the 70% shareholder decision carry all day.
Assuming that the income effect is negligible, how much will he be hurt if the cost of strawberries goes from $1 a pint to $2 a pint.
Discuss the characteristics of each of the following investments and rank them in terms of risk and return: standard deviation and return rate:
Three tests for any source of competitive advantage are align, differentiate, and add value. Discuss whether these tests are difficult to pass. Can compensation really be a source of competitive advantage? Why or why not??
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The Coke machine requires exact change -two quarters and a dime. No other combination of coins will make anything come out of the machine. Draw a graph that illustrates ..
A $200,000 bond having a bond rate of 8% payable annually is purchased for $190,500 and kept for 6 years, at which time it is sold. How much should it sell for in order to yield a 7% effective annual return on the investment?
Suppose that velocity is constant at 9, but the nominal money supply increases from $1.5 to $1.8 trillion. What must happen to nominal output? Suppose further that real output is constant at 13.5 trillion “units”: what must happen to the price level?
What can be said about the benefits and problems of each dimension (economic, cultural, political and environmental) of globalization? Is globalization a positive force overall?
Take a position: Mass marketing is dead versus mass marketing is still a viable way to build a profitable brand. Discussion-with marketers increasingly adopting more and more refined market.
The market for hairbrushes is perfectly competitive. Suppose that the new fashions for hair are "buzz cutt" and long and uncimbed. Tell how the market and a typical firm respond in the short and long run to these developments. Use market/firm model a..
Amy Jane, a new manager at C & D Grooming, has been asked to focus on the competitive environment of the organization. Illustrate which of these factors is among those Amy Jane should focus on.
Warren Buffett’s company went public in 1965. The public offering price walls $18 per share. The stock was traded at $92,400 on April 10, 2009, and the market value of the firm was $97.8 billion. What is the firm’s average annual compound growth rate..
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