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Question: 1. Assume the following exchange rates are quoted on a particular day: £1 = 3DM, £1 = $1.8 and $1 = 4DM. How can an investor with .elm make a riskless gain by buying and selling currency on the foreign exchanges?
2. If the forward rate of exchange is at a discount, what does this tell you about the expected future spot rate?
How far were most people willing to go to obey authority? Would you have gone this far? According to the text, "ordinary" people are more likely than not to follow an authority figure. Does this seem believable? Why or why not?
Identify the existing effect of the economic factors on aggregate demand and supply. Identify fiscal policies that are currently being recommended by government leadership.
How do you know when the government should use a tax or a subsidy in order to eliminate a negative externality?
What print methods might you consider for the first smaller runs? Would you change to a different method if the product does well and goes into larger production runs? Justify your reasoning and considerations.
Discuss the dangers of a high debt to GDP ratio and a growing budget deficit.
Explain why your findings in part (a) are an illustration of the ‘Ricardian equivalence' principle. Is it possible that your answers would be di§erent if households were unable to borrow?
Assume that the minimum wage has just been increased by 35%. Is the below true, false or uncertain. Explain with specific economic concept discussed in class.
when looking at a renewable resource such as fisheries explain what is meant by a sustainable yield. explain different
Explain why each of the factors may influence the own price elasticity of demand for a commodity - Consumer preferences, that is, whether consumers regard the commodity as a 'luxury'' or a 'necessity''.
Give a specific example for each ( US Companies ). Which one is better market from the stand point of producers? Which one is better market on the stand point of consumers?
"Output per worker is expected to increase by 10 percent during the next year. Therefore, wages can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Analyze this statement.
Consider a profit maximizing firm producing a differentiated product by use of capital and labour. Although the firm can use both capital and labour as inputs, and it is fairly easy to substitute between these inputs, the firm relies heavily on la..
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