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Suppose that during one period, the velocity of money (V) is constant and during another period, it undergoes large fluctuations. During which period will the quantity theory of money be more useful in explaining changes in the inflation rate? Briefly explain
What are the gains and losses of international trade? What happens when tariffs are imposed, in terms of the importing and exporting countries? Use graphs as needed and explain your answers thoroughly.
Suppose that there is an increase in the supply of foreign exchange due to an inflow of foreign investment in a flexible-rate system. Explain how this would affect the balance on current account, being careful to explain any assumptions about the for..
A town of 200 individuals that drives SUVs. 200 on average burn a gallon of gas every 18 miles. At 15,000 miles of travel what is the impact of driving this vehicle? The town became environmentally conscious and switched to hybrid SUVs in order to ge..
A 500-MW power plant costs $3,700/kW to be built and the operating cost is $26.00 per MWh produced, including fuel, personnel, maintenance and other expenses. The plant will operate at an average of 85% capacity. What is the total investment to build..
What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Why might firms in perfect competition choose to be open on Monday, typically the slowest day of t..
Draw a production possibilities curve for the pleasure you get between hanging with friends and from doing your Economics problem set.
Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 6%, consider the present and future values of this gift, depending on when you become engaged. The present value of the..
There are 16 hours daily to be divided between working for day and leisure. Working yields hourly wages of $10. Any hours worked in excess of eight hours are considered overtime, and are compensated at $15 hourly. Produce the budget constraint implie..
Suppose the demand function (D) for golf clubs is: Q = 240-1.00P, where P is the price paid by consumers in dollars per club and Q is the quantity demanded in thousands. Calculate the equilibrium price for golf clubs and the equilibrium quantity sold..
Capital stock at the end of the year of this economy to remain constant as the beginning of the year, how much investment is needed.
Bahrainia is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Bahrainia for the last fiscal year was 24.2 bi..
Why is the stock market affected by predictions that the Federal Reserve will raise interest rates in the near future?
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