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a. Using symbols and explaining their meaning, distinguish between: (1) the domestic demand for goods; and (2) the demand for domestic goods for an open economy.
b. Explain why the demand for domestic goods curve (ZZ) has a different slope than the domestic demand for goods curve (DD).
c. Using fully labeled ZZ/Y and NX/Y figures, illustrate graphically and EXPLAIN INTUITIVELY (i.e., by economic relationships) what effect, if any, an increase in taxes has on output, exports, imports, and net exports.
Assuming the same financial market transaction costs and risks, will funds tend to move toward the U.S. or Japan if the U.S. Interest rate is 5 %, the Japanese interest rate 2%, and there is a forward discount on the dollar of 2%? How will this effec..
In terms of the law of contract can they sue Mr Patel for the cost of R17 000.00 that they are now required to pay to rectify the errors. Assume that the electrical compliance boards report is correct. Do you think Mr Patel has any defence to the cla..
Highlight the pertinent facts; Identify the issue of law and/or fact posed by the case problem; What should be the decision in the case? On May 15, Smith brought an action against Green to recover the unpaid portion of the $48,000 salary. Is Smith’s ..
A change in which of the following is least likely to cause a shift of the consumption function?
What amount of base salary F will make Mickey just indifferent between accepting and not accepting the contract?
Because of a city tax reduction, the total fixed cost a firm must pay is reduced by $500 monthly. The firm operates in conditions of perfect competiion. If the firm seeks to maximize its profit, this cost reduction should (at least in the short run) ..
What is adverse selection? How does its existence affect the market for health insurance? What are some ways insurance companies protect themselves from adverse selection?
Suppose that a tax of $28 is levied on each item sold by a monopolist, and as a result, it decides to raise its price by exactly $28. Why might this decision be against its own best interest?
What is the equation of exchange and velocity of money? Explain the quantity theory of money and its relationship to NOMINAL GDP. What happens in the long-run when the money supply (MS) increases? What if LRAS and MS grow at 3%? What if velocity vari..
He has asked you to develop a policy that can be addressed at the upcoming State of the Union Address.
What do you think of Coca-Cola's environmental initiatives? Are they just window dressing , or does the company seem to be sincere in its efforts?
Discuss Whether or not Nicole is an independent contractor. While visiting with Z-1, a leading car manufacturer, in an attempt to secure its business.
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