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Using the Mundell-Fleming diagram, explain what is meant by effective policy instrument choice, being careful to identify clearly the critical elements of the diagram. Why is the EB curve postulated to be more interest-elastic than the IB curve? In what ways is the IS/LM/BP model preferable to the simple Mundell-Fleming diagram?
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros). What is the real exchange rate? In which country is the automobile less expensive?
This year the owner, who had invested $1 million in the club, decided to close the club. what can you say about economic profit and the rate of return in the nightclub business.
The corresponding average total cost is $3.50 and total fixed costs equal $1,250. Based on this information, should this firm continue to operate in the short run? Please explain why your answer is yes or no.
If you consider your path as a student from the first day of class to now, you may observe that you are also working on a lifelong project. In this Application you will reflect on your college-level career as a project and analyze it using standar..
A machine with a ten year life is to be depreciated by the MACRS method. The machine has a 1st cost of $30,000 with a $5,000 salvage value. It's yearly operating cost is $7,000 per year.
Imagine that you intend to buy a portfolio of ten stocks with some of your savings. Should the stocks be of companies located in the same country?
Describe how the budget constraint of a household in a two-period model is affected by each of the following changes. In Each Case, do you think the household is better off, or worse off, or is it ambiguous If ambiguous.
Discuss the economic and constitutional costs impacted by this Act. Explain if security has increased since the enactment of the Patriot Act and if so, has that increased security been worth the cost? Provide examples to support your claims.
Explain the two types of capital expenditure giving relevant example in each case.
1. why are bond markets important?2. why are stock markets important?3. why are banks important?4. what aspects of the
What market structure have you entered, and why? What can you do to guarantee success in this market? What pricing strategy might you use?
Draw a well labeled graph of the market for paintbrushes. In your graph indicate the equilibrium price and the equilibrium quantity. Also, identify the area that corresponds to CS and the area that corresponds to PS.
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