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The Mundell-Fleming model takes the world interest rate r as an exogenous variable. Let's consider what happens when this variable changes.
(a) What might cause the world interest rate to rise?
(b) In the Mundell-Fleming model with a floating exchange rate, what happens to aggregate income, the exchange rate, and the trade balance in a small open economy when the world interest rate rises?
(c) In the Mundell-Fleming model with a fixed exchange rate, what happens to aggregate income, the exchange rate, and the trade balance in a small open economy when the world interest rate rises?
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Explain gambling from a risk-return perspective and from a Christian worldview. What is wrong (from a Biblical viewpoint) with gambling if consumers want it? Is price-discrimination always wrong? Under what conditions might it be ethically allowable?
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
A firm in Perfect Competition has a Total Cost Function: TC = 6Q^2 - 8Q + 12 with a current P=$6. What is the current Quantity and Profit or Loss? Will firms enter or leave the industry? What will be the long run Price and Quantity?
A brief look at Viet Nam's banking system, including its development, the role of the central bank, the currency, and the central bank’s influence on the level of prices. Interaction of the monetary system with the government’s fiscal policy, includi..
one receives a higher salary with the successful completion of degrees or the earning of diplomas. Elucidate how the sheepskin effect is analogous to SIGNALING MODEL.
Other things held constant, would the calculated capital intensity ratio change over time if the company were growing and were also subject to economies of scale and/or lumpy assets?
Senior citizens and students have a relatively less elastic demand compared to other potential moviegoers. The government requires lower prices for senior citizens and students. Senior citizens and students have a relatively more elastic ..
A monopolist faces a price function given by P = z(36 - 2Q), where P is price, Q is total output and z is the quality of product sold, which can take on only two values. The monopolist can choose between a low quality product z = 1 or a high-quality ..
Why do the United States and many other countries have antitrust laws on the books? What's so harmful about oligopoly that warrants an entire body of law?
Read The Iliad as if you are an archaeologist who has just discovered an ancient text which gives you a window into the ancient world. You hold this fragile treasure in your hands, and begin to read, knowing that you must suspend your modern perspect..
There are three retirement plans under development. Each plan has a 6% compounded monthly and you cannot take a withdrawal until year 20. One plan requires a payment of X/year for the next 10 years. The other requires a payment of $200 each year from..
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