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Problem
The appreciation in the dollar's exchange value from 1980 to 1985 made U.S. products (less/more) expensive and foreign products (less/more) expensive, (decreased, increased) U.S. imports, and (decreased, increased) U.S.
exports.
Suppose the dollar/franc exchange rate equals $0.50 per franc. According to the purchasing-power-parity theory, what will happen to the dollar's exchange value under each of the following circumstances?
a. The U.S. price level increases by 10 percent and the price level in Switzerland stays constant.
b. The u.s. price level increases by 10 percent and the price level in Switzerland increases by 20 percent. c. The U.S. price level decreases by 10 percent and the price level in Switzerland increases by 5 percent. d. The U.S. price level decreases by 10 percent and the price level in Switzerland decreases by 15 percent.
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
Discussion: Taylor Rule and Inflation Targeting- Determine impact on the economy if the central bank in the US used inflation targeting. Explain your rationale.
The consumer has an income of $24 per week. The price of a hamburger is $2 and the price of a milkshake is $1. How many milkshakes and hamburgers will he buy each week if he maximizes utility? Illustrate your answer on a graph.
How does this story illustrate the meaning of "GDP per year" when the GDP number is reported every three months?
Describe the impact of software development and computing technologies on business productivity.
Write an essay on one unintended consequence of the Columbian Exchange. Write an essay that supports your thesis statement.
Enumerate the common areas where frauds and disputes normally take place in internationally marine transaction and commercial shipping , and state the common precautions to be taken by international buyer and sellers to prevent the possibilities o..
Utilize the marginal productivity theory of labor demand to predict the impact on the firm's employment level of the following events.
n your answer, discuss the Federal Reserve's use of open-market operations to influence the money supply and the respective consequences of such actions.
A producer produces good y using a single input x according to the production function y=x^a where 0
Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP. Explain how the accelerator and the multiplier concepts can represent an internal theory of business cycles.
Where z is marginal utility per dollar spent, x is the amount spent on product A, and y is the amount spent on product B.
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