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Question: 1. One strong argument for a flexible exchange rate system is that it frees up monetary policy for use in pursuing domestic targets. Explain why this is so.
2. Why does monetary policy get a boost from the external sector under a flexible-rate system?
3. Suppose that policymakers decide to expand the economy by increasing the money supply. Based on the trade effects, who do you expect to favor such a policy? Who is likely to be against this policy? Why?
Consider the market for laptop computers. The demand for laptops is Q = 1800 - 3P. Suppose the supply of laptops is given by Q = -200 +2P. What is the equilibrium price of laptops?What is the equilibrium quantity of laptops?
the united states has had a significant trade imbalance for several years. what are the problems associated with
A man had to have the muffler replaced on his 2-year-old car. The repairman offered two alternatives. For $300 he would install a muffler guaranteed.
Graph the museum's average total cost curve and its marginal-cost curve. What kind of market would describe the museum?
Determine what the U.S. should do to ensure the availability of strategic materials in which it has a comparative advantage. Explain your rationale.
Suppose you are the CEO of ClipIt, a paper clip producer. Your firm enjoys a patented technology that allows it to make paper clips faster and at a lower cost than your only rival, FastenIt.
What is this manufacturer's fixed cost? For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC)
Are all seats sold? If not, wouldn't the airline make more money by selling more seats at a lower price - Explain the conditions necessary for a firm to practice 3rd degree price discrimination and using airline conditions as examples.
Explain the usefulness of forecasting the state of the economy one year down the road and the difficulties of being able to do so.
An investor bought a one-acre lot on the outskirts of a city for $9000 cash. Each year she paid $80 of property taxes. At the end of 4 years.
Circular Flow Diagram. Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products mark..
At the equilibrium GDP for a private open economy:
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