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Suppose the French suddenly develop a strong taste for California wines. Answer the Following with words and a Diagram:
a. What happens to the demand for dollars in the market for foreign-currency exchange?b. What happens to the value of dollars in the market for foreign-currency exchange?c. What happens to the quanity of net exports?
Define transfer payments and give an example. Describe why transfer payments are not included in GDP. Determine which components of GDP would be affected through following,
Does the principle of "increasing opportunity cost" hold in this nation? Explain briefly.(Hint: What happens to the opportunity cost of bread-measured in the number of ovens-as bread production increases?)
In August 2002, preliminary information showed that payroll employment increase 39,000, household employment increase 429,000, and the unemployment rate fell from 5.9 percent to 5.7 percent.
Suppose the banking system is in reserve equilibrium. The Fed conducts an open market purchase of Treasury securities in the amount of $1 billion.
Assume your bank increase its minimum-balance requirement for free checking on checking accounts by $500. You take $500 out of your passbook savings account
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
Martin's Yachts has paid yearlydividends of $1.40, $1.75, and $2.00 a share over the last three years, respectively.
A consumer, D Carroll, spends all of his income on 2 goods X and Y. The 2 goods are both normal but are not complementary. The price of good X is reduced but the price of good Y is unchanged. The consumer continues to spend all of his income on th..
Suppose you are provided with the following production relationships, where the input is fertilizer (pounds per acre) and the output is rice (cwt per acre). Using graph paper, please graph AVP, MVP, and MFC
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
Describe the total cash flows in real terms and the depreciation tax shield. What is it that has you concerned.
Early in 2007, a survey of greenhouses indicated that the demand for houseplants was rising sharply. AT the same time, large numbers of low price producers started growing plants for sale. The overall result was a drop in the average price of hou..
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