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The Big Mac Price Index calculated through the Economist has consistently found the United State dollar to be undervalued against some other major currencies, which seems to call for a rejection of the purchasing power parity theory. Explain why the index may not be a valid test of the theory.
Assume that both the stock market and housing prices fall in the United State 1st, describe the channels through which these shocks affect aggregate demand for goods and services.
In 1981, the United State negotiated a contract with the Japanese. The contract called for Japanese auto firms to limit exports to the United State.
Determine the effects of one country pursuing expansionary fiscal policy and tight monetary policy?
Describe how the conditions of covered interest parity and uncovered interest parity are reached, and indicate the implications of the analysis for the prediction of the future spot rate.
May rise or reduce in absolute value as one moves southeast along an indifference curve, depending upon whether the substitution or income effect is dominant.
The Republic of Republic produces 2-goods, marshmallows and soda water. In 1994, the one hundred units of MM produced sold for $3 a unit and 50 units of SW produced sold for $1 a unit.
What will be the effects of an increase in the money supply
Discuss each of the six indicators, and explain its current status. In addition, present a separate graph for each indicator illustrating the historic trend for each.
Sal's International is a popular haircutting and styling salon near campus of University of New Orleans. Four barbers work full-time and spend an average of fifteen minutes per customer.
Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea
Describe how the following events would effect market for South Africa's currency, the rand, suppose a floating exchange rate.
In September 1983, it took 245 Japanese yen to equal $1. More than twenty years later that exchange rate had fallen to 108 yen to $1.
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