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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
Consider a consumer whose preferences over the goods are represented by the utility function U(x; y) = xy2. Recall that for this function the marginal utilities are given by MUx(x; y) = y2 and MUy(x; y) = 2xy. (a) What are the formulas for the indier..
The Johnson Company pays $2000 a month to a trucker to haul wastepaper and cardboard to the city dump. The material could be recycled
An increase in the interest rate is expected to cause the number of people attending college to:
In a fictional city, the city council introduces a new $500 per month tax on one-bedroom rental units. The tax raises the typical monthly rent on one-bedroom units from $950 per month to $1,050 and it lowers the number of one-bedroom units rented out..
Gross Domestic Product involves a calculation of the total value of the goods and services generated within an economy in a stated or identified time period. The main difference between real GDP and nominal GDP is that nominal GDP does not consider h..
Suppose that the economy moves from point A to point B because of increases in costs of production. The central banking authorities respond to the decline in output by implementing an expansionary monetary policy, which causes a further increase in t..
q. 1. patent systems can be worthwhile if induced innovations are important also if the rewards from patents speed them
The government increases taxes by $6200 in an economy where households spend 92% of each additional dollar they earn. Calculate the total effect on output (or aggregate demand). Carefully follow all numeric instructions. Round any intermediate steps ..
Borrowing in the form of debt is riskier than borrowing in the form of equity. Explain why this is true.
Draw hypothetical supply and demand graphs for men and women to both occupations assuming that some of each gender prefers each job. Now, assume that discriminatory actions take place in the restaurant business preventing men from becoming chefs. Sho..
An in-kind transfer is a subsidy A. Of a specific consumption good. B. Repaid by services rather than income. C. Motivated by kindness rather than paternalism in the sense that the subsidized good is not a merit good. D. Organized through the governm..
Refer to the graph above representing the purely competitive market for a product. When the market is at equilibrium, the total opportunity cost of producing the equilibrium output level would be represented by the area:
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