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Question: An iPad costs 700 Canadian dollars. The nominal exchange rate is 1.1 Canadian per US dollar.
1. According to the law of one price, what should the price of the same iPad be in the United States?
2. If the current price is US$600, is the Canadian dollar undervalued or overvalued? overvalued? By how much?
3. Why don't we necessarily see people or companies buying iPads in the country where they are cheapest and reselling them in the other country?(i.e. arbitration)?
4. Suppose that the Canadian government imposes an (additional) tax of 20 for every iPad sold in Canada. What can we expect?
If I told you that GDP was forecast to rise by a bit more than 3% over the next year, what would that mean to you? What should you be asking about the forecast?
If "excess profits" are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?
Real GDP per capita of China is $4,000, and its annual growth rate is 7%.Look at the scenario Growth Rates. According to the rule of 70, how large will China's real GDP per capita be in 20 years? PLEASE SHOW ALL WORK.
It has therefore beensuggested to modify the one-time pad by only encrypting with k 6= 0`(i.e., to have Gen choose k uniformly from the set of nonzero keys oflength `). Is this modified scheme still perfectly secret? Explain.
As a network infrastructure architect for a retail music chain, you know the value of unified communication (UC) to your business. Discuss how you will convince your organization to change over to true integration and what technologies would be af..
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Analyze the structures of Malaysia airports holding berhad's Board of directors: Composition, Independence, Diversity, CEO duality, Board size. How does the str
Why would firms in such an industry have little incentive to carry out technological change or much research and development.
What is the definition of aggregate supply and aggregate demand?
people are not very responsive to the price changes of this product and the absolute change in quantity demanded is less than the absolute change in price. people are not very responsive to the price changes of this product and the magnitude of th..
According to the rule of 70, how long will it take for your income to double if you get a 5 percent raise every year? If you start work at the age of 23 earning $40,000 per year and get a 5 percent raise every year, how much will you be earning if yo..
Macropoland has a natural rate of unemployment at about 4.5% and its long run average of inflation over time has been about 2%. This means that no matter what happens in the short-run, the long-run averages of unemployment and inflation will always b..
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