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1. Suppose that the average price of goods imported from Great Britain increased. Is it likely that the value of the Australian dollar would appreciate or depreciate versus the British pound, ceteris paribus? Is it likely that the average price in British pounds of goods exported from Australia to Great Britain would rise or fall?
2. Suppose that Australia's price level is 125, the British price level is 100, and the nominal exchange rate of pounds to the dollar is £0.60 = $1. Calculate the real exchange rate of pounds to the dollar. Show all workings.
3. Explain how the CPI is constructed, and discuss any weaknesses with this measurement technique.
Did the actions or inactions of the board of directors contribute to the problems at Citigroup? What changes in governance would you recommend and why?
1. if you owe money to a bank. will you gain or lose from an unanticipated decrease in inflation?2. how could inflation
Illustrate what does this suggest about the natural free trade pattern of specialization in Argentina. i.e. would we expect that it would be a net importer or exporter.
Countries A and B have the same rates of investment, population growth, and depreciation. Country A has a higher rate of growth than does Country B. According to the Solow model, which country has higher investment in human capital?
What is the steady-state equilibrium dollar value of the capital stock in 2007 and what is the steady-state equilibrium dollar value of total output in 2007?
Plot the production possibilities frontier in Question 1 on a graph. Measure food along the horizontal axis and tractors along the vertical axis and plot the new production possibilities frontier
a local hardware store is trying to decide whether to stay open. they have found that their industry is extremely
Show the change in the balance sheet of the commercial bank receiving this money after it has been transferred to the Federal Reserve, but before it has had time to expand loans at all.
Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television.
in your opinion do you feel education is important in getting a better job and earning more money. why or why not?do
The market demand for a public good can be determined by A)adding up how much each consumer is willing to pay for each unit of the public good. B) Adding up how much each citizen expects to consume at each possible price C) Adding up the total pri..
Suppose that real GDP per hour of work grew by 6 percent last year and the capital per hour of work grew 9 percent. Using the one third rule, by how much did the increase in capital per hour of work increase real GDP per hour of work?
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