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Suppose Home is a small open economy and received a significant amount of capital.
1) Suppose that Home produces both computers and shoes using labor and capital. Both factors are perfect mobile across industries. The production of computers is more capital intensive than the production of shoes. All assumptions of the HO model holds except that capital can move across countries. Analyze, algebraically, how the inflow of capital affects the industry outputs in Home.
2) Suppose that Home produces agricultural goods using land and labor, and produces manufacturing goods using capital and labor. Land is specific to the agriculture sector and capital is specific to manufacturing sector. Labor is perfectly mobile across sectors. All assumptions of the specific-factors model holds except that capital can move across countries. Analyze how the inflow of capital affects the industry outputs in Home.
Compute the least-squares line for predicting evaporation (y) from temperature (x).
find an article in which either fiscal or monetary policy makers were describing their goals of maintaining stable prices, full employment, and adequate economic growth over time. Which goal was the most important at the time your article was writ..
in avataria one-forth of all females born die in infancy and the rest of them live until age 60.women bear 1 child at
Suppose we have Dagwood, who has a current income of $200K and expected future income of $60K. He has $50K in current wealth (i.e., ‘a' = $50K), but this is before he opens that % envelope. He has zero expected future wealth.
Find the yield to maturity of the following securities: A. a security paying $ 1000 in one year, for which you pay $926 today B. a security paying $ 80 0ne year from now and $ 1080 two years from now, for which you pay $1,050 today
Find the profit maximizing output and price.
Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial banking system.
What are the mechanisms that ensure continued full employment of labor in the classical case?
Suppose a random variable X has a discrete uniform distribution on the first m positive integers. Find the mean and the variance of X. What are the mean and the variance if X equals the outcome when rolling a fair six-sided die
Why would increased spending as a percentage of GDP on, say, household appliances or education in a particular economy be regarded as economically desirable. Why, then, is there so much concern about rising expenditures as a percentage of GDP on h..
The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals.
The theory of optimal commodity taxation argues that equal tax rates should be set across all commodities so as to maximize exigency by ‘‘smoothing taxes.''
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