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Strong Australian dollar = import becomes cheaper and reduce inflationary pressure -> allow the RBA to set a lower interest rate. But export is less competitive, tourism industry with less visitors
Weak Australian dollar = exports are more competitive. Result in higher inflation, higher interest rate, discouraging investment
When a currency depreciates and theirs capital flight countries often raise interest rates to prevent it, im confused dont high interest rates discourage investments so how would raising interest rates prevent capital flight
Which of the following raise the incentive for households to save?
What causes inflation? What is the quantity theory of money and how does it explain inflation? What is seignorage? What is the tax inflation? Understand the costs of inflation in detail. Understand the so-called inflation fallacy. What are the costs ..
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the busi..
Government action is based on majority rule, whereas market action is based on mutual consent. The market allows for proportional representation of minorities, but minorities must yield to the views of the majority when activities are undertaken thro..
A carwash dryer is purchased for $150,000 and is expected to last ten years but have no salvage value. Although it takes $15,000/year to maintain, it will generate $50,000/year revenue. Joe DePlumma, the owner, can make an 18% rate of return on his o..
Japanese GDP in 2010 was 480 trillion yen (U.S. GDP, again, was $14.5 trillion). The exchange rate in 2010 was 87.8 yen per dollar. Contrary to China and India, however, Japan had higher prices than the United States: the price level in Japan (conver..
In this assignment, you will examine how to construct production possibilities frontiers and use them to explore economic tradeoffs. Each country on your graph should have the same degree of concavity, with the two outputs of goods and services label..
(a) Is the plant economically justifiable to the firm without the subsidy? What is the PWI? (b) What is the annual subsidy?
The purpose of the assignment is to assess skills in critical thinking and communication, core objectives mandated by the State of Texas Quality of English
You have just been hired by a company as an economist and strategic planner. Your company has asked you to generate a report explaining the consequences of the market structure in which the company operates. Assume that the market structure is an oli..
Suppose that an economy has the Phillips curve. What is the natural rate of unemployment? Graph the short-run and long-run relationships between inflation and unemployment. How much cyclical unemployment is necessary to reduce inflation by 5 percenta..
The manager of a local monopoly estimates that the elasticity of demand for its product is constant and equal to -3. The firm’s marginal cost is constant at $30 per unit. a. Express the firm’s marginal revenue as a function of its price. Instruction:..
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