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Consider a small open economy in the short run where the government imposes trade tariffs on corn.
(a) Given a floating exchange rate sketch a graph of the impact of the tariffs on IS-LM. (
b) With a floating exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods?
(c) Given a fixed exchange rate sketch a graph of the impact of the tariffs on IS-LM.
(d) With a fixed exchange rate how does the trade tariffs impact the sale of domestic corn? Other export goods?
(e) Under which regime (floating or fixed exchange), are the tariffs more effective in increasing output?
(f) Under which regime does the money supply increase by more or less, why?
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Using the concept of opportunity cost also PPF explain the phrase affluence tomorrow requires sacrifices today
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A few questions in this problem set are based on the comments made by James Love to Congress regarding antitrust policy and the Petroleum industry. These are found at the end of the module on Antitrust Policy. Why is less concentration a problem for ..
Suppose that the pre-tax price of cigarettes is $3.00 per pack and the post-tax price of cigarettes is $4.00 per pack. The tax is $1.50 per pack and is paid by the retailers of cigarettes to the government. Six hundred packs were sold prior to the ta..
The difference between a nation's balance of payments and its balance of international indebtedness
Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.
Elucidate how much does the total amount of deposits in the banking system increase. By elucidate how much does the money supply increase.
Identify also converse at least two arguments which support trade restrictions also two Once modest trade restrictions.
When the marginal-cost curve lies below the marginal-revenue curve. Assume that for a perfectly competitive firm marginal revenue equals rising marginal cost at 100 units of output. At this output level, the firm's total fixed cost is $600 and its to..
q1. you have an opportunity to invest in a new plant. the fixed costs are 100000 per year. the marginal cost of
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