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1. What is a foreign exchange rate? Provide a few examples.
2. How is the exchange rate determined in a freely floating rate system?
3. Who demands Japanese yen? Who supplies yen?
4. Practical Application: Foreigners are buying up hundreds of billions of dollars a year in American assets. In what ways should this be a matter of concern to Americans?
One alternative way (from the formula on p. 419) to calculate the total change in money supply when the Fed injects money into the economy or takes away money from the economy is the amount of money injected or taken away by the Fed times the mone..
Explain how the exchange rate acts as an automatic stabilizer in an economy with flexible exchange rates.
To the right is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approa..
How many goods are traded?
Each firm has a marginal cost of $60 per unit. A. What is the Cournot equilibrium B. What is the Stackelberg equilibrium when Firm 1 moves first
Suppose a firm producing a commodity X is a price taker. The prevailing market price for X is Php. 20. The firm's cost is given by TC=(0.1q^2)+10q+50 where q=the number of X the firm chooses to produce per day.
Why have you decided to change the way your network is paid commercial? Do you think that the new compensation scheme is right to improve The quality of interactions with physicians? Raise your answer in Terms of the design principles of incentive..
Suppose that the Fed wants to stabilize the current price level. How will the Fed respond to the increase in expected future output? Explain why the Fed's response is an example of reverse causation.
Compute the profit consequences of the advice.
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.
When the price of good X falls from . 10 to . 9, the demand for good Y Increase from 20 Kg. to 25 Kg. a) What is the cross elasticity of demand of good Y for good X b) Are goods X and Y compliments or substitutes
(Poverty and Discrimination)Which types of discrimination may cause an earnings gap between white and black workers? Consider discrimination in schooling, for example. How would researchers detect such discrimination?
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