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1. a. Suppose the dollar/Real exchange rate is fixed but Brazilian prices are rising faster than U.S. prices. Is the Brazilian appreciating or depreciating in real terms?
b. If the dollar is appreciating against the British pound in nominal terms but depreciating against the pound in real terms, what do we know about British and U.S. inflation rates?
c. Suppose the nominal peso/dollar exchange rate is fixed. If the inflation rates in Mexico and the United States are constant (but not necessarily equal in both countries), will the real value of the peso/dollar exchange rate also be constant over time?
d. Does it make sense to borrow during times of high inflation because you can repay the loan in cheaper dollars?
Explain the finding that people in high-income economies seem happier than people in low-income economies, but, over time, people in high-income economies do not seem to be any happier even if their country grows richer.
The demand for polished bronze is given by P = 100 - Q/2. Production of polished bronze is controlled by Bronze Indentify BIs profit maximizing output and price. What is the cost to the town of removing the mercury pollution?
Explain how much more money has the Fed printed and where is it now. What affect will an increased M1 money supply have in the long-run.
Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )
These problems from Macroeconomics and the problems deal with the expenditures of the whole economy. Various factors such as money supply, net export, governmental policy and aggregate demand.
My scenario is where I am going to open restaurants in China. One in Shanghai & one Beijing.
Early in 2007, a survey of greenhouses indicated that the demand for houseplants was rising sharply. AT the same time, large numbers of low price producers started growing plants for sale. The overall result was a drop in the average price of hou..
What happens to price and output in the Cournot, Bertrand and Stackelberg models if marginal costs increase by 10 percent if N=2, there are constant marginal costs (c), and firms face demand p = a - bq?
Explain why this strategy may, in fact, be rational. Also, identify at least two other strategies that might permit Argyle to earn higher profits.
E-books and the paper book versions of the same books are substitutes. Assume that copyright holders originally demand a higher price for e-books than for paperback books. Then they relent and allow publishers to sell e-books for a lower fee.
question 1nbspthe following data is part of a fictitious nations national accountsitemvalue billion2013household
Discuss the real output and in ation expressions verbally - New Keynesian model with technology shocks
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