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Problem
1. If short-term capital is neither perfectly immobile nor perfectly mobile internationally, why is the predicted impact of expansionary fiscal policy on the exchange rate ambiguous?
2. Explain, using the IS/LM/BP model, how a rise in the expected appreciation of the foreign currency can lead to an increase in domestic interest rates.
3. Why might it be argued that recent changes in international prices of food and energy have had a smaller impact on the U.S. economy than would have been the case under the pre1973 pegged-rate system?
4. "A sudden increase in interest rates in the European Union would likely lead to both depreciation of the U.S. dollar and upward pressure on U.S. interest rates." Agree? Disagree? Why?
Develop conclusions about the economy's influence on personal and business decision-making relative to purchases of big-ticket items or other major purchases.
read the speech of the fed chairman ben bernanke he delivered on oct 18 2011 at the federal reserve bank of boston
Use the production possibilities frontier (PPF) to demonstrate economic growth.(Growth and the PPP)
The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.
Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
Prepare a schedule showing the intangible assets section of Bailey's balance sheet
Utilizing the midpoint formula, elucidate the price elasticity of demand for Coke at these prices.
The unitd States alo mantains barirs against Idian imports such as textiles. Mrs. Clinton, Presidet Obama, and Anand sharma, The indian minister o commerce and inustry,say they want to dismantle these trade barriers.
a. Explain why the villain is wrong, and why we should not be concerned about ecological collapse caused by a world-wide population of 9 billion. b. Describe at least 2 legitimate environmental concerns for the planet and developing nations in part..
Think an economy with following Cobb Douglas production function; Determine the equation describing the demand for labor in this economy?
Suppose that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50, respectively. Create and interpret a Lorenz particular level of total income.
Refer to Exhibit 2-6. Which graph depicts the consequence of acts of war? The fundamental reason why most supply curves are upward sloping is that. On a supply-and-demand diagram, equilibrium is found.
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