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In comparison to a floating exchange rate, the effect on the volume of trade in a fixed exchange rate is:
higher for an indirect peg than a direct peg.
lowest for currency unions.
highest under an indirect peg.
highest for currency unions.
Trading partners should specialize production in accordance with comparative advantage, then trade and diversify in consumption because
In a market where government has set the maximum price below the equilibrium price, one might expect:
Explain when a researcher is trying to estimate the causal effect of X on Y, and finds that the R^2 of her bivariate regression model is around 0.04.
Steven consumes only two goods, both of which are normal goods. He is maximizing his utility in consumption of both goods. Now assume the price of one of the goods increases. How should Steven's consumption change?
The interest rate effect of the price level is reflected in: Changes in aggregate demand can be caused by changes in: The classical model of the price level is associated with: A decrease in the money supply is likely to cause:
Illustrate what are marginal net profit when Q=1? Q=5. Illustrate what level of Q maximizes net profits, Illustrate what is value of marginal net profits.
Below are three parcels of real property A, B and C. B wants to have a built-in swimming pool installed in his backyard. In order to run the water line directly from the main in the street to the site, the line must run over his neighbor’s property. ..
According to Keynes, why might deflation create problems for an economy?
In the summer of 1972, due to extensive crop failure in the (former) Soviet Union, Russia spent over $1 billion to purchase American wheat. Since the American crop had been completely harvested when the Russian deal was made, American farmers were un..
Tariffs are more favorable to an importing country than quotas because: Which of the following best defines the business cycle? Suppose that 2000 is the base year used to calculate the CPI. And ethe CPI in the year 2007 is 110. What is the value of t..
Consumer spending during holiday seasons affects the aggregate demand (AD) in the economy. AD drastically declines during serious recessions. Explain what President Roosevelt might have been trying to achieve, using the model of aggregate demand and ..
q.government budget constrainta write the governments lsquolifetime budget constraint assuming its lifetime is just
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