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1. Pick a country and search the Internet for newspa- per or magazine articles that contain information related to the balance of payments of the country and corresponding movements in the foreign exchange value of the country's currency. Does an unexpectedly large current account deficit cause the country's currency to strengthen or weaken on the foreign exchange market?
2. What are the effects on the British balance of payments of the following set of transactions? U.K. Videos imports £24 million of movies from the U.S. firm Twenty-First Century Wolf (TFCW). The payment is denominated in pounds, is drawn on a British bank, and is deposited in the London branch of a U.S. bank by TFCW because TFCW anticipates purchasing a film studio in the United Kingdom in the near future.
When a small firm expands the scale of its operations, why does it usually first experience increasing returns to scale When the same firm grows to be extremely large, why might a further expansion of the scale of operation generate decreasing ret..
Two events occur simultaneously in the market for automobiles: (1) an improvement in assembly line 'technology' and (2) the economy enters a 'recession' (which decreases 'income' of consumers). An economist would predict with certainty that equilibri..
Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong and Singapore? Explain the rationale for your choice.
What do the unusually large maturity yield differentials noted above suggest about investor expectations of future short term interest rates?
Illustrate what has occurred to change the demand for, or the supply of, the good or service, and market prices of those products or services.
consider our standard formula for gdp ycigx. additionally note that consumption is given by c aby-t where t -200.2y.
A needy family of a mother and three children currently receives cash benefits that average $12 per day. The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline. After that, for each dollar earned..
In recent years, the Internet auction firm eBay has sougth to make its auction technology the favorite of software programmers, and it has begun licensing its technology to other Web sites. The company's managers have pulicly stated
Which are preferable and why, fixed, flexible, or a mixture of the two exchange rates. What nation have officially dollarized their economies.
Walter used the cash method to account for income from his cattle ranch. During an audit in year 3, the IRS auditor discovered a document from a customer indicating that Walter sold 115 head of cattle to the customer two years earlier for $77,000.
Suppose that over a range of prices, the price elasticity of demand varies from 15.0 to 2.5. Over another range of prices, the price elasticity of demand varies from 1.5 to 0.75. What can you say about total revenue and the total revenue curve
Consider the following data, which applies to Avataria and Twilightia in the years 1990 and 2010. In both countries the production function in per worker terms is: y = A(k)^1/2(h)^1/2. Country; Year; Output per worker, y; Physical capital per..
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