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Question: last summer's hot and dry weather blighted the European hop harvest and strong demand for increasingly popular craft beers, which use a lot of hops, is putting small brewers' profit margins under pressure and forcing them to raise their prices.
Suppose the spot price of the euro is currently $1.47 and the 1-year forward price is $1.56. Is the 1-year interest rate higher in the U.S. or in the euro zone? (HINT: remember that Sf/d = 1/Sd/f and Ff/d = 1/Fd/f )
Explain why it would generally not be considered wise economic policy for a government to attempt to achieve a balanced
they each printed the other's currency, with the intention of dropping large quantities by airplane. explain why might this have been an effective weapon.
Suppose total benefits and total costs are given by B(Y) = 100Y - 8Y2 and C(Y) = 10Y2. What level of Y will yield the maximum net benefits?
Problem 1: Price Elasticities and Revenue A company has experimented with 4 different prices.
Tourism development requires the expansion and improvement of infrastructure in order to boost tourism supply and demand. Discuss the validity of such statement
How many jobs are there in the occupation currently? How does the unemployment rate effect the economy? How can we make sure this rate goes down?
A competitive firm's Total Cost function is TC(Q) = a + bQ + cQ2 + dQ3 What is the firm's Shutdown Price when a = 50, b = 12, c = -1, d = 0.1?
What necessarily happens to average quality in a hospital market when the generosity of insurance coverage increases? How does this relate, if at all, to the data appearing in Chapter 1 on increases in hospital spending through time in the hospital s..
The government of France taxes movies that are produced outside of the country at the rate of tx , which effectively subsidizes domestically-produced movies. Is this policy consistent with a Pareto efficient allocation of resources? With the aid of s..
What are two effects of mutual interdependency on a firm's behaviour, and which matrix diagram using game theory would be the best?
How has monetary policy changed since the summer of 2013?
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