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1. Even if it is assumed that the central bank holds the money supply exogenous, why is it inappropriate to use the IS-LM equations/curves only for the determination of real output for both the closed and open economies? Frame your answer in terms of the implications of Walras's law.
2. For a designated country of your choice, what is the appropriate assumption for macroeconomic analysis on the exogeneity or endogeneity of the money supply? What justi?es this assumption?
3. What aspects of the economy should the central bank examine in making its decision on whether to use the money supply or the interest rate as its primary/exogenous monetary policy instrument?
4. Why is the IS-LM analysis inappropriate for an economy in which the central bank sets the interest rate exogenously? How would the money supply be determined in this context?
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
Apple recently launched the iPod nano under 2-different versions:2GB and 4GB. There are two types of customers of the iPod nano.
Explain the nature of the deadweight losses that occur from a tariff. What is countervailing duty, why is it needed, and how does it work. What is the difference between a specific tariff and an ad valorem tariff.
Failure to understand elasticities can lead to expensive mistakes by business managers in making important business decisions. Discuss this statement by referring to any one of the concepts of elasticity with suitable examples (price elasticity of de..
When was the last scheduled meeting of the FOMC?
suppose that ge is trying to prevent maytag from entering the market for high efficiency clothes dryers. even though
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select a firm whose stock is publicly traded on a u.s. stock exchange. what strategic changes has this firm made over
the discussion board db is part of the core of online learning. classroom discussion in an online environment requires
F8. Dr. Old requires that all services be paid for a time of treatment, in cash. If he decided to allow patients to pay with credit cards, will it increase or decrease price elasticity?It will increase price elasticity because more options of payment..
monopoly please responds to the followingidentify a company in your local area that you would classify as a monopoly.
If the domestic market is perfectly competitive, find the equilibrium price and quantity of rice. Compute the triangular areas of consumer surplus and producer surplus.
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