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The Republic of Argent does 50% of its trade with Eurasia and 50% with Oceania. Over the last three years, the currency has risen from 1 to 1.1 and then to 1.3 against the Oceania dollar. However, against the Eurasian euro it has fallen from 1 to 1/1.1 to 1/1.3. What is the effective exchange rate? If the Republic wishes to ?x its exchange rate, what ex- change rate regime would you recommend?
economists use elasticity to measure consumer responsiveness to changes in the various determinants associated with
What are the distinguishing characteristics of “public goods”? Give two examples of a public good. Why are public goods difficult for markets to allocate efficiently?
Please expand on the text's given definition, using other relevant terms from the chapter, and also give a practical example of that key concept. Please don't simply supply the text definition
Suppose that a natural monopolist was required by law to charge average total cost. On a diagram, label the price charged and the deadweight loss to society relative to marginal cost pricing. Briefly explain your diagram and comment on the results..
Presume you can go to the gym for up to six hours in a day in finely divisible units and you paid a $50 non-refundable registration fee when you joined the gym last year. There is also a daily $1 fee which should be paid to enter the gym on any given..
Presume that a country has no public debt in year 1 however experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5. Wha..
what is the equation of his budget line?nbsp sketch the budget line and two possible indifference curves that herbert
Suppose a firm is operating in perfectly competitive product market where the price of its output can be sold at the price p=$10. The firm can hire any number of workers at the wage of W=$50.
Workers are compensated by firms with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2000 workers at one steel plant were paid $20 per hour
1. What would be true of entitlement spending rose to 100 percent and the federal budget was balanced? (Hint: Under a balanced budget, tax revenues equal the sum of discretionary expenditures.) 2.How would entitlement spending be funded if ta..
your company maintains a surprisingly large presence in the tiny country of liechtenstein. the prince of liechtenstein
There're 10 auto firms in this problem each showing their market share percentage (US auto industry). The proposed merger involves Ford 22% and BMW 1%.
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