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The Federal Reserve sets the target growth rate of money (M1) at 2% from now until the end of this year, while the European Central Bank (ECB) sets its target growth rate of money at 7% during the same period. The current spot rate is $1.12 per euro. What do you expect will be the spot rate at the end of this year? Explain why. Which theory do you apply for your forecasting?
What is the externality associated with an individual driving on a congested highway? how do tolls help alleviate this externality? How should tools be set? (Hint: would you always want the toll to be the same all day?) The steel industry pollutes th..
Based on heckscher online theorem. As a labor abundant country exports the labor intensive good X and imports the capital intensive good y from a capital abundant country.
To which category of U.S. GDP expenditure does each of the following correspond? Using any relevant information below, calculate GDP via the expenditure approach. Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion..
The Texas Tech alumni association is interested in starting a new scholarship fund for incoming students. Each scholarship will be $500 and they anticipate funding 10 students each year. All scholarships are awarded at the end of the year. The organi..
If a firm experiences diseconomies of scope, then it:
How does what we measure determine successful or unsuccessful outcomes. Give concrete examples of measurement and/or measurement systems and how they determine outcomes. In addition, discuss the definition of success from an individual, corporate and..
The key condition for equilibrium to occur in a market is: Without taxes, the market price per bag of apples is $5. With a $2 tax per bag of apples, buyers now pay $5.75 per bag. What is the final price per bag of apples received by sellers?
A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his selling price by $1, he sells 5 less bottles each week. He turns over the operation to a Managerial Economics student for a week. What price did the stude..
When the price of a good decreases: A. demand increases. B. supply increases. C. the quantity demanded increases. D. the quantity supplied increases.
In the pen industry, a large number of firms produce differentiated products, and compete on quality, price, and marketing. They aren’t protected by laws or regulations. This market most closely resembles
Innovation activities influence strategic planning and sales forecasting. Is there a single best generalized innovation strategy that will optimize strategic planning and sales forecasting? If yes, explain the strategy. If no, explain why not
The tools of monetary policy for altering the reserves of commercial banks are the
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