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1. What are government's fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of government? A person who thinks the public sector is too large? How does the "ratchet effect" affect anti-inflationary fiscal policy?2. What is the basic determinant of (a) the asset demand for money? Explain how these two demands can be combined graphically to determine total money demand. How is the equilibrium interest rate in the money market determined? Use a graph to show the effect of an increase in the total demand for money on the equilibrium interest rate (no charge in money supply). Use your general knowledge of equilibrium prices to explain why the previous interest rate is no longer sustainable.3. Why is quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quotas for the world economy?4.Explain why the U.S. demand for Mexican pesos is downsloping and the supply of pesos to Americans is upsloping. Assuming a system of flexible exchange rates between Mexico and the United States, indicate whether each of the following would cause the Mexican pesos to appreciate or depreciate, other things equal:the United States unilaterally reduces tariffs on Mexican products.Mexico encounters severe inflationdeteriorating political relations reduce American tourism in Mexicothe U.S. economy moves into a severe recessionthe United States engages in a high-interest rate monetary policyMexican producers become more fashionable to U.S. consumersthe Mexican government encourages U.S. firms to invest in Mexican oil fieldsthe rate of productivity growth in the United States diminishes sharply
When you apply conventional finish to the wood you use traditional lacquers. The California Division of ABC has changed from conventional lacquers.
The agency decides to hire operators to monitor calls in order to attain the optimal number of personal calls.
From the scenario, explain how government grants would influence the business's operations. Be sure to emphasize the taxes, social benefit, and price level for both substitute goods and current products.
Suppose each monopolist is allowed to sell both domestically and export the good. At what price will the good be traded? What quantity will each firm sell domestically and what quantity will it export?
sandy sue sanders can take a job paying $10,000 a year when she graduates from high school, or she can go to college and pay $9,000 a year for tuition. Measured in dollars, Illustrate what is her opportunity cost of going to college next year.
Calculate the internal rate of return and the net present value to determine the desirability of this investment.
How is power distributed in the U.S. political system? How does the U.S. political system reflect the distribution of power? List and discuss six ways in which urban planning can be political in nature. With references.
compute the cost of the company's retained earnings. if the floatation cost per share of new stock is $4, calculate the cost of issuing new common stock.
In mid 1990s, Japan's annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in late 1980s. illustrate what effect this decline had on.
Describe nominal GDP and real GDP in year four using the following information: in year one, the base year, 10 computers sold at $2000 each, and 15 televisions sold at $500 each.
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
the firm will earn $15,000 if it introduces the new product, and revamping the production facilities will earn new profits of $60,000. What should the manager do.
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