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Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). (1) If US is running a 5% inflation rate solely due to the increase of money supply, what is the inflation rate Mexico should run? Explain your answer.
Determine the point price and income elasticity’s for household furniture. b. What interpretation would you give to the exponent for R?
Suppose that the U.S. government decides to levy a tax (such as an excise tax) on cola consumers. Before the tax, 20,000 cases of cola were sold every week at a price of $8 per case. after the teax,
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope.
Consider the following game. You roll a six – sided die and each time you roll a 6, you get $30. For all other outcomes you pay $6. What is the expected value of the game?
Why are many online service markets likely to be perfectly competitive? Recently, competitors of Plug and Play have been opening their own shared- workspace centers. Does the market for shared workspace likely possess characteristics of a perfectly c..
In preparing the actual forecast numbers, the forecast staff should
Every Saturday morning he requires his sales staff to send him a report. This report Comprises, among other thing, the number of professors visited during the earlier week.
Consider a closed economy. Use the supply and demand for loan able funds model to predict the effects of the following events on interest rates and investment.
Annual savings due to energy efficiency thermo well have a most likely value of $30,000. The most optimistic value is $40,000 with a probability of 0.2 and a most pessimistic value of $20,000 at 0.3. The First Cost is $150,000, the interest rate 10%,..
Discuss which economic relationships you have studied up until now (not just in this class, but in all your economics classes) could be estimated using the simple linear regression model as well as the information you would need to estimate such a re..
Ingrid took a university teaching job as an assistant professor in 1974 at a salary of $10,000. Illustrate what is Ingrid's 2003 salary in 1974 dollars.
q. many small boats are made of fiberglass which is derived from crude oil. assume the cost of oil risesa. using
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