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1. What factors will shift the supply and demand for currency?
2. What are the three categories of transactions in the balance of payments? Give an example of each.
3. Economists sometimes say that the current exchange rate system is a dirty float system. What does this mean?
4. What are the main arguments presented against flexible exchange rates?
The expected value is. You want to run a difference-in-difference experiment with a price increase for your lawn chairs in Miami. If you are worried about "leakage" with your control group, a poor comparison city would be
Identify one product that is commonly bought and sold in the economy that has experienced a recent price change. Based on your understanding from the readings and the other material from this module, provide three reasons why you think that price has..
What is the definition of a contract? What are the required elements? What is the distinction between a void and avoidable contract; between an executive and an executor contract; and between a unilateral and bilateral contract?
Suppose the welfare benefit formula is, How large is the benefit if wages equal. What is the breakeven level of income in this case?
Illustrate what risks do you face. Upon inquiry at your bank, you find that the forward price for a September contract to buy dollars is 10SKr per dollar. How might you hedge your exchange-rate risk for the first year.
Suppose the economy produces only two goods: consumer goods and capital goods (K). Also suppose the economy is operating at full employment. Finally, suppose consumer goods are subject to legal price controls (price ceiling). Use a PPF to show the ec..
A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child to have $60,000 for his or her education. He plans to setup a perpetual trust fund so that six children will receive this assistance in each generati..
Suppose there are two types of law school students: Short-haired and Long-haired. Additionally, law students generally choose between two types of firms when they graduate: Big and Small. Then, what is the probability of being both Short-haired and w..
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,738 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a use..
A firm has a monopoly on a new type of gaming console. The market demand is given by P=175.3-0.003*Q and thus marginal revenue is MR=175.3-0.006*Q. The monopolist's marginal cost is MC=5.2+0.001*Q. Calculate the profit-maximizing production quantity.
How can restricting entry into a union help boost members’ wages without the union specifically setting wages? Distinguish between a closed shop and a union shop. Are either or both shops legal? Explain . What is a monopsony and how does a monopsonis..
Currently there is a debate about whether high employment rates in the US are the result of cyclical factors or structural factors. Describe this debate? What impact might immigration have on the different types of unemployment?
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