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In 2010 the Financial Times reported that the Mexican Finance minister called for a third change to the country's taxes in as many years. (Financial Times, March 19, 2010) The result would be an increase in tax revenue for the Mexican federal government. Assume that Mexico is a small open economy. How will the increased taxes affect investment, savings and the real exchange rate for Mexico? Show graphically and explain. (Assume no other changes in the economy.) Also, how will the higher taxes in Mexico affect the world interest rate? Explain.
describe the current global economic conditions and their effect on local macroeconomic indicators for your good or
Suppose that you are on holiday in Russia, when suddenly you are arrested and accused of spying for United States.Your captors tell you that if you confess, you will receive a prison sentence of 2-years,
topic monopolistic competition. 1. consider the village of fanjeaux - a beautiful bucolic historic but remote village
given the current economic situation determione the steps the federal reserve should take to help stabilize our
you have the following information on the marginal benefit and marginal cost of abating emissions of a given
A geothermal heat pump can save up to 80 percent of the annual heating and cooling bills of a certain home in the north-eastern U.S. in this region, the yearly cost of conventionally cooling and heating a 2,000 square foot house is about $2,500.
During the 1980’s President Reagan pushed for significant tax cuts as a way to promote consumer spending. This extra money that consumers found they had also began to drive up prices causing the Federal Reserve to enact monetary policy to combat infl..
Assume there is an imperfect capital market. Draw a graph to show the optimal years of schooling for an individual with high access to funds but of low ability and an individual with low access to funds but with a higher ability level. Which ind..
a) Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given the level of output
1 describe the difference between ldquomoney marketrdquo debt instruments and ldquocapital marketrdquo debt instruments
Explain the effects of each of the following managerial decisions or economic influences on the profits of McDonalds, the fast food chain, referencing either basic demand and supply analysis or the Porter five forces framework (or both) in each case...
Suppose instead that the payoffs of advertising game between two companies are (20,20), (28,5), (5,28), and (12,12) when the strategy combinations are (C, C), (N, C), (C, N) and (N, N). Then the minimum patience (in terms of the discount factor) need..
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