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In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to increase by $8 per tire. Who was the primary loser from this tariff?
Illustrate what means do they use to hedge against exchange rate risk. Using this information.
Discuss what happens to the demand and or supply and to the equilibrium price and quantity in the market for housing as population increases and at the same time the government releases more land for housing.
In general terms, efficiency refers to:
We know that investment spending depends on real interest rates, yet the demand for money is dependant on nominal, not real, interest rates. Why should money demand be dependant on nominal rates?
The spending multiplier measures the effect of a change in government spending on the overall output of an economy, all other things being equal. If an increase of $10 billion in government spending produces an $11 billion increase in overall output,..
What factors determine the elasticity of industry’s labor demand curve? Based on these factors, discuss labor demand for factory line workers versus labor demand for nurses, which one would be more elastic?
explain the future consequences of this action on the economy and the inflation rate. Please indicate the documentation on your research.
How many Argentine pesos would it cost given the new exchange rate you just calculated.
Consider the policy assignment problem for a country with flexible exchange rates. In this case, the policy instruments become government spending (G) and interest rates (i). Using your solution show how an economy escapes from an initial situation o..
A single firm’s innovations in production technology often benefit the production of other firms, because these other firms learn about the new technology and can use some of the ideas in their own production. Why does this positive externality creat..
Suppose the government spends $500M on a project that has absolutely no value to the country. If taxes were raised $500M to fund this project, the Keynesian model predicts that this will have no net effect on output in the economy. If the government ..
How can these leaders use their control over current taxes, subsidies and government debt to force their successors to reduce steady -state government expenditures below 900,000 goods.
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