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1. Suppose at the beginning of the year, a textbook sells for €60 in Paris, France, and $60 in New York City, and PPP holds. Over the year, there is an inflation rate of 10 percent in France and no inflation in the United States. What exchange rate would maintain PPP at the end of the year?
2. Suppose that economic growth in Mexico suddenly slows, all other things held constant. According to the monetary approach to exchange rates model, what should happen to the dollar price of the Mexican peso? Why does the model make this prediction?
3. Suppose that domestic money demand is falling at 2 percent per year while the money supply is rising at 6percent per year. What is happening to the domestic price level? Explain.
In what ways can the government policies affect the degree of competition and the mark-up, positively or negatively?
directionsa describe economic terms and concepts in question.b describe your reasoning leading from concepts in
If the MAAR is 12 percent, compute the value of X that makes the two alternatives equally desirable.
What is the marginal profit and total profit of a wage that is equal to $80 and an output that is equal to $3?- provide with the MRP-W labor market diagram
Review the GDP data for the last few years from Bureau of Economic Analysis's Website and give a brief summary of the GDP trends over that timeframe and discuss 2or3 events which may have caused these trends.
How can corporate culture affect productivity? What is its source of generation? Does it just emerge, or is it cultivated? How can corporate culture affect the productivity of the organization? Share your thoughts and examples.
Have you seen a movie where nuclear missiles were being test launched? If so, you might recall that two military officers followed a complex procedure to initiate the test launch. Each officer had half of what was needed to complete the procedure...
The demand for shirts produced by a canadian manufacturer has been estimated to be P=30-Q/200
Explain how bank losses from mortgage backed securities could lead to an investment bank becoming insolvent and going bankrupt. Your explanation should use a somewhat realistic T-Account
Assume that demand for oranges is given by the following equations, With quanity measured in oranges a day and price measured in dollars per Orange.
When McDonald's Corp. reduced the price of its Big Mac by 75 percent if customers also purchased French fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U.S. sales growth.
What determine the quantity of corn we grow, homes we build, and health care survives we produce. Sixty years ago farm output was 5% of the total US production now it is 1 percent.
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