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Political Instability Abroad Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. Refer to Political Instability Abroad. What would happen to the dollar?
A. It would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods.
B. It would appreciate in foreign exchange markets making U.S. goods less expensive compared to foreign goods.
C. It would depreciate in foreign exchange markets making U.S. goods more expensive compared to foreign goods.
D. It would depreciate in foreign exchange markets making U.S. goods less expensive compared to foreign goods.
If the demand for a commodity is elastic, an increase in the price of the commodity. Assume the cross price elasticity of demand for products A and B is positive.
If the American auto companies make a breakthroufh in automobile technology and are able to produce a car that gets 70 miles to the gallon, what will happen to the value of the dollar? Use the demand-supply model of the dollar to explain.
Supply and Demand in the U.S. Car Market. Please include a graph showing the initial equilibrium and the new equilibrium with the corresponding price and quantity and an explanation to support your answer.
The Los Angeles retail market for unleaded gasoline is fiercely price competitive. Calculate the average total cost curve for a typical gasoline retailer, and verify that average total costs are less than price at the optimal activity level.
Suppose that the economy is in long run equilibrium, producing the full employment level of output. Now suppose that workers and firms come to expect the Fed to embark on expansionary policy to increase the level of output. Use the graph below to ill..
It can be really hard to engage this kind of thinking because it requires risks that aren't even known or knowable, but it's these very risks that reap the biggest rewards. So, as a leader how might you evaluate an option like this? What would it tak..
Demonstrate the short-run effect of this tax cut using the IS-LM model also the AD-SRAS-LRAS model. Illustrate what will take place to o/p also the interest rate.
Which of the following is not a characteristic of a monopolistically competitive market structure? If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is. Both individual buyers and sellers i..
explain exactly how you would take advantage of this situation to create a riskless profit.
Assume that grapefruit is an inferior good. Draw a perfectly competitive market for grapefruit and a firm selling grapefruit in the long run equilibrium where price is $1 and the firm’s equilibrium quantity is 50. Explain the following situations gra..
Suppose that doctors’ visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors’ visits and a composite good that costs $1 per unit. Draw a graph that illustrates the consumer’s budget constraint..
Consider a decision maker who is choosing how many apples to buy. His choice set is {0, 1, 2, 3, 4, 5, 6} (the store has only 5 apples). (a) Suppose the decision maker always wants as many apples as possible. Find a utility function that represents t..
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