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France and Germany have a fixed exchange rate. Suppose France is in recession and German output is at potential. Can the European Central Bank help France out by lowering its interest rate? How does this affect Germany? In addition, how could France and Germany coordinate fiscal policies to achieve potential output in both countries under a fixed exchange rate?
How to explain that a permanent rise in the growth rate of the foreign money supply affects the exchange rate and home output in the short and long runs.
Target inflation is 4 percent; actual inflation is 9 percent. Output equals potential output. What does the Taylor rule predict will be the Fed funds rate?
To help make the detection of actual incidents more reliable, D.L. Pipkin has identified three broad categories of incident indicators.
Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $30 per month. Producing q gallons of honey in one month requires spending 5q dollar bees and 2q^2 dollars on sugar. How much profit..
Compare & contrast the 3 schools of modern macroeconomic thought discussed in class & the text (this includes "Keynesianism", Monetarism & Rational Expectations
Monetary expansion causes the present account balance to increase in the short run. Describe this statement. Is the same true for fiscal expansion.
The Federal Reserve Bank is the central bank of the United States. Describe the structure of the Federal Reserve System and explain how the Fed's structure is designed with checks and balances in mind. How is then Fed governed and what are its rol..
You are the adviser to a Benevolent Social Planner. GDP is falling also the economy is in a recession.
Think of a business company you recently visited. What motivated producers of all individual iteams in the store to make them and offer them for sale?
Explain what you understand by an indifference curve. Explain also how the indifference curve and budget line apparatus is used to derive a consumer's demand curve. In drawing a demand curve, certain things are held constant. What are they and how..
Why are these statements technically incorrect What would a supply and demand graph look like if it portrayed demand exceeding supply What does a commentator really mean when he or she says the demand for natural gas exceeds the supply
A regression of Yt onto current, past future values of Xt yields.
In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottles of wine. After a month, the store clerk informs you that the same crate of wine now costs $82. However, there are 7 bottles in ..
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