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Q. Bayerische Motoren Werke AG (the German manufacturer of BMW automobiles) opened a plant in South Carolina. Assume that this involved buying land and a factory building for a total of 25 million Deutsche marks (DM), and that the United States and Germany operated under a perfectly flexible exchange rate regime. The (hypothetical) exchange rate between U.S. dollars and DM was $1/DM2.
a) Show how the transaction would have been recorded in the U.S. balance-of-payments accounts. What was the net effect on the U.S. balance of payments with Germany?
b) Show how the transaction would have been recorded in the German balance of payments accounts. What was the net effect on the German balance of payments?
A woman managing a photocopy establishment for $25,000.00 per year decides to open her own duplicating place.
Now Assume that the interest rate falls to 50 percent, and the household decides not to borrow or lend at all. Is the household better off or worse off with the higher interest rate.
Bayer Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. The Alka-Seltzer Plus was a spin-o..
To find and explain the Nash equilibria of a widespread form game can I use the equivalent normal form game to do that.
How does this policy affect the total quantity of investment? The quantity of business investment? The quantity of residential investment?
Suppose you were manager of restaurant and you were told honestly that a couple eating dinner has just seen a mouse, what would you say to them, how would you recover from this service crisis.
Suppose that you buy a bond for $100 that pays four percent interest per year. Explain how much money will you have earned when the bond reaches maturity in five years.
Suppose that tax and aggregate expenditur income for an economy. Illustrate what is the change in taxes cause by an increase in government spending.
the manager wins with a payoff of 20, and the auditor loses with a payoff of - 20 . If the actions don't match, the auditor wins with a payoff of 20, and the manager loses with a payoff of - 20. Diagram this game and comment on the equilibrium.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisi..
Illustrate what mistakes did policymakers make that have kept developing nations from growing more quickly.
does barney have an absolute advantage in any activity. Illustrate what is Barneys relative opportinuty cost of writing one additional speeding citation.
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