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Brazil’s president, Dilma Rousseff, and her finance minister, Guido Mantega, are attacking the U.S. Federal Reserve for aggressively buying bonds and driving the exchange rate of the dollar down. This will hurt Brazil and other developing-country exporters, Mantega says, and what’s more, it’s meant to.
1. How does the purchase of bonds by the Fed lower the exchange rate of the dollar? Explain.
2. What can the Central Bank of Brazil do to prevent the Brazilian currency from appreciating relative to the dollar? Explain.
3. What will be the effect of this action of the Brazilian Central Bank on the Brazilian economy?
As a production manager who understands the academic argument for free trade working in an company threatened by cheaper imports, how do you react.
Derive the Aggregate Demand (AD) curve graphically, the experiment is to change Y in i-Y space and see what happens to P.
Describe why relatively flat as opposed relatively steep labor demand curves are more consistent with empirical observation that there are relatively minor changes in the real wage rate over course of business cycle.
Please detail the possibilities of using fiscal policy to stimulate economic activity in Denmark in a situation of economic stagnation among the most important trading partners.
The demand for salt is relatively price inelastic where the demand for pretzels is relatively price elastic. How can you best explain why
In a country with a market economy, the owners of firms (businesses) are, to use Gwartney, et. al.'s term, residual claimants. What are the implications of this particular characteristic of business owners? How do other citizens within the country..
Illustrate what can you say regarding your price elasticity of demand of apples
Assume that a cake is being divided in following way among two players. Each player writes down a number from zero to one on his piece of paper.
How would you compare this case to the so called "prisoner's dilemma" case and how would you compare this case to the so called "Nash Equilibrium"? Explain the difference between this case and Nash Equilibrium clearly.
Elucidate how the enterprise zones could be utilized to enhance the economic development implications of your policy issue.
You only need to refer to the 3 or 4 papers that you think are the most important. Use economics journals for your references, for example, Journal of Health Economics, Rand Journal, American Economic Review, etc.
The economic prices of international buiseness usually exceed the economic benefits in both the short-term and long-term.
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