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The government of Argentina believes that the country's economy is stagnating and implements a major increase in public expenditure in order to stimulate the economy during the current year. Because the government has problems borrowing in domestic and international credit markets these days, it decides to have the Central Bank of Argentina print money and buy government bonds, so that the government will have sufficient money to spend. Assume that the exchange rate is flexible and the interest parity condition holds. Also, assume that the price level is exogenously determined and the conditions in the rest of the world remain unchanged. Finally, assume that the government's policy is viewed as temporary and has no impact on the course of the economy beyond the current year.
How would this policy affect the equilibrium real income and the nominal interest rate in Argentina?
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game
21st century electronics has found a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards.
What do we call agreements on how communication components and Dtes are to communicate?
Suppose that natural real GDP is constant. For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent. Draw the new short-run Phillips Curve.
The government places a price floor on milk which is below the current equilibrium price of milk. The number of children who drink milk and the number of farmers who produce milk increase at the same time.
Discuss and estimate the price elasticity of demand for a good or service of your company, or a company of interest to you
What is the impact of this on the revenues of the networks also why.
Economics 211- Address how the size and the composition of the Fed's balance sheet have changed over the past seven years and the implications for open market operations as a policy tool when the Fed has such a large balance sheet.
The paper should address the following questions: What is the current state of the US ECONOMY? What are the implications of a Fed rate rise for economic growth? What policies should we encourage our economic partners to pursue
Propose an idea to control and prevent the erosion, and to save your seaside home from falling into the ocean. Try to think of an idea that will be feasible to actually carry out, and post your idea to the discussion board.
Suppose countries A and B each have 1000 units of Labor available. Countries A and B can produce two goods, steel and TVs, using the following labor coefficients (labor requirements) per unit of output produced:
Are these initial conditions favorable for trade? If so, which nation has a comparative advantage in which good? If each nation does, indeed, have a comparative advantage, then how much will each nation produce if it completely specializes in the..
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