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The following questions are based on fixed exchange rate and/or flexible exchange rate regime in an open macroeconomic model. The answers must be written in your words along with graphical illustration. Without explaining in your words, the graphical illustration alone will not be credible. Also make sure you use the relevant symbols and notation on each of the lines and axis on the graph(s) to clearly indicate the working mechanism of variables.
Suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condition to be restored.
Jessica Alba, a famous actress, starts the baby and family products business, The Honest Company, with Christopher Gavigan. Describe a skimming price and a penetration price, and advise them whether they should charge a skimming price or a penetratio..
The long run is defined as:
Focus on the ethical dilemmas in testing drugs on human beings. How are those dilemmas changed—made easier or made more difficult—when the issue shifts to testing drugs on animals?
If a firm sold $700 worth of goods which cost $1,000 to produce: A. national income would no longer equal GDP. B. the firm's loss needs to be subtracted from final sales so that income and output are still equal. C. the firm's loss would not be added..
Suppose you borrow $6,000 in student loans at a 5 percent annual interest rate in 2013. How much will you owe after 10 years of accumulating debt? If inflation is 6 percent per year over this period, how much will you owe after 10 years in real 2013 ..
Suppose all workers have the same preferences represented by U = (sqroot)w - 2x , where w is the wage and x is the proportion of the firm’s air that is composed of toxic pollutants. what is the wage in dirty jobs? What is the compensating wage differ..
The compressor is a key component in manufacturing both refrigerators and air-conditioners.
Suppose that Julia finds $50,000 in cash in a mattress that was given to her and decides to deposit all of the money into her cousin's checking account. If the assumptions of the simple deposit multiplier hold and the required reserve ratio is set at..
Suppose the market demand faced by a monopoly can be represented by. What is the firm’s MC curve? Graph the firm’s MR, MC and Demand curve. Firm’s profit-maximizing output Qm? Firm’s price Pm? Markup? Rent? Mark the area of Monoply Rent in your grap..
what would be best advice to a person who wants to lean more about political issues. Watch only television news and commentary shows daily.
Question 1 The accompanying payoff matrix depicts the possible outcomes for two players involved in a game of Rock, Paper, Scissors. If a player receives a payoff of 1, the player wins;
Suppose a student has 9 hours available to study Economics, Spanish and Psychology with an estimate of performance based on hours of study for upcoming exams. Graph the gain in scores for studying first, second, third…., ninth hour for studying a) Ec..
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