John believes to labor supply is highly elastic

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Reference no: EM1319438

Q1. John also Jeremy are utilitarian's. John believes to labor supply is highly elastic while Jeremy believes to labor supply is quite inelastic. Elucidate how do you Assume their views about income redistribution differ?

Q2. A U.S. resident can earn 6% interest on a one-year bank deposit of $100,000 at home; alternatively, she can convert the $100,000 into Euros also earn 4% on a one-year back deposit in Germany. If the exchange rate is initially 1.5euros per dollar also then changes to 1.45 Euros per dollar in one year, that deposit would have given the U.S. resident a higher return?

Reference no: EM1319438

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