Economics

Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppo

Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7 percent and the interest rate on a on…

Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppo

Suppose that the exchange rate adjusts so that interest-rate parity holds. Suppose also that the interest rate on a one-year German bond is 7 percent and the interest rate on a on…

Suppose that the exchange rate adjusts so that interest-rate parity holds. suppo

Suppose that the exchange rate adjusts so that interest-rate parity holds. suppose also that the interest rate on a one-year German bond is 7% and the interest rate on a one-year …

Suppose that the exchange rate adjusts so that interst-rate party holds. Suppose

Suppose that the exchange rate adjusts so that interst-rate party holds. Suppose also that the interest rate on a one-year German bond is 7 percent and the interest rate on a one …

Suppose that the experiment lasts for 15 periods with dividends that are either

Suppose that the experiment lasts for 15 periods with dividends that are either $1 or $3 each with 50 percent probability and with a final redemption value that equals the sum of …

Suppose that the federal administration plans to fight a deep ongoing recession

Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget ac…

Suppose that the federal administration plans to fight a deep ongoing recession

Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget ac…

Suppose that the federal administration plans to fight a deep ongoing recession

Suppose that the federal administration plans to fight a deep ongoing recession with a nationwide plan of increasing infrastructure. Congress approves it and adjusts the budget ac…

Suppose that the fictitious nations of North Orange and South Blue have the unit

Suppose that the fictitious nations of North Orange and South Blue have the unit labor requirements for producing steel and brooms shown in the table below: Unit labor Country req…

Suppose that the following data describes the economy of Saskatchewan: Marginal

Suppose that the following data describes the economy of Saskatchewan: Marginal propensity to consume, MPC          0.6 Marginal propensity to import, MPIm           0.35 Proporti…

Suppose that the following equations refer to a simple national economy: C_t = 0

Suppose that the following equations refer to a simple national economy: C_t = 0.375 Y_t - 1 I_t = 40 - 0.125(Q_t - 1 - Q_t - 2) where C_t = the consumption in year t Y_t = the in…

Suppose that the following figure depicts a perfectly competitive market. a. Wha

Suppose that the following figure depicts a perfectly competitive market. a. What are the equilibrium price and quantity and at equilibrium what is the value of the producer surpl…

Suppose that the following table describes the economy of Endor. a. Calculate th

Suppose that the following table describes the economy of Endor. a. Calculate the growth rate of GDP and population for 2014, 2015, and 2016 in percentage terms. b. Calculate GDP …

Suppose that the following table represents the goods and services produced in a

Suppose that the following table represents the goods and services produced in a very simple closed economy in 2016. Using the information in the table below, answer question 2. P…

Suppose that the gasoline retailing industry is perfectly competitive, constant-

Suppose that the gasoline retailing industry is perfectly competitive, constant-cost, and in long-run equilibrium. If the government unexpectedly levies a five-cent tax on every g…

Suppose that the government claims that it has achieved a budget surplus for the

Suppose that the government claims that it has achieved a budget surplus for the current fiscal year. If true, then total national debt at the end of the fiscal year would be: Que…

Suppose that the government collects a specific tax of t = $0.11 per rose stem f

Suppose that the government collects a specific tax of t = $0.11 per rose stem from rose farmers. Before the tax, the demand curve and the supply curve determine the competitive e…

Suppose that the government cuts net taxes by $10 billion. These are lump sum ta

Suppose that the government cuts net taxes by $10 billion. These are lump sum taxes. To keep its budget balanced at its current level, it also reduces its spending by $10 billion.…

Suppose that the government does a better job of enforcing federal and state law

Suppose that the government does a better job of enforcing federal and state laws against sexual harassment in the workplace so that on-the-job sexual harassment is eliminated. Im…

Suppose that the government gives a fixed subsidy of T per firm in one sector of

Suppose that the government gives a fixed subsidy of T per firm in one sector of the economy to encourage firms to hire more workers. What is the effect on the equilibrium wage, t…

Suppose that the government has been conducting policy according to the followin

Suppose that the government has been conducting policy according to the following equation for some time now: Money Growth = 3% + (Unemployment Rate ?6%). If the unemployment rate…

Suppose that the government hires additional police officers and pays them 100.

Suppose that the government hires additional police officers and pays them 100. Shortly thereafter, we observe that police officers' spending on consumer goods rises by 64 and the…

Suppose that the government is concerned that an electric utility company is tak

Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a publ…

Suppose that the government is concerned that an electric utility company is tak

Suppose that the government is concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. The government views electricity as a publ…

Suppose that the government is debating an increase in expenditures equal to $5

Suppose that the government is debating an increase in expenditures equal to $5 billion dollars. Assume that the marginal propensity to consume (MPC) is equal to 0.90. According t…

Suppose that the government mandates that a certain prescription medication cann

Suppose that the government mandates that a certain prescription medication cannot be solid at a price higher than $5, as shown in the figure. Which area is the deadweight loss ca…

Suppose that the government of Ansonia is experiencing a large budget surplus wi

Suppose that the government of Ansonia is experiencing a large budget surplus with fixed government expenditures of G 250 and toed taxes of T in the following consumption function…

Suppose that the government of Lumpland is enjoying a fat budget surplus with fi

Suppose that the government of Lumpland is enjoying a fat budget surplus with fixed government expenditures of G = 150 and T = 200. Assume that consumers of Lumpland behave as des…

Suppose that the government of a hypothetical country decides to pursue a restri

Suppose that the government of a hypothetical country decides to pursue a restrictive fiscal policy such as decreasing government expenditures. This question asks you to explore t…

Suppose that the government plans to undertake one of two possible spending proj

Suppose that the government plans to undertake one of two possible spending projects: Project A involves spending $10 billion to build more military aircraft; project B involves s…

Suppose that the government wants to impose a $1/hour tax on labor hours, so it

Suppose that the government wants to impose a $1/hour tax on labor hours, so it can use the proceeds to fund some unrelated public project. Suppose you are hired as a consultant b…

Suppose that the government wants to keep the sidewalks clean by installing 100

Suppose that the government wants to keep the sidewalks clean by installing 100 new garbage cans. The garbage cans are purchased this year at a cost of $200 per can. Hello, I woul…

Suppose that the government wishes to decrease the market equilibrium monthly re

Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units o…

Suppose that the government wishes to encourage the manufacture and sale of smal

Suppose that the government wishes to encourage the manufacture and sale of small cars. The current supply and demand of small cars are: Qs = (10/9) + (1/9)P;Qd = 100P, where Q is…

Suppose that the government\'s data collection agency has estimated the prices o

Suppose that the government's data collection agency has estimated the prices of six broad groups of consumer expenditure as well as the average proportions of consumers' income t…

Suppose that the governor of Georgia wishes to pass fiscal policies that would h

Suppose that the governor of Georgia wishes to pass fiscal policies that would have an immediate impact on the state’s economy, and hence improve his chances of reelection. What t…

Suppose that the graph below depicts demand curves for gasoline over two time ho

Suppose that the graph below depicts demand curves for gasoline over two time horizons, the short run and the long run. Curve M shows the demand for gasoline in the __________; cu…

Suppose that the graph below represents the market for financial capital in Pala

Suppose that the graph below represents the market for financial capital in Palau. How does an increase in the budget deficit of Palau affect its equilibrium interest rate? The eq…

Suppose that the graph below shows an aggregate demand-aggregate supply (AD-AS)

Suppose that the graph below shows an aggregate demand-aggregate supply (AD-AS) model of the U.S. economy at the end of the third quarter of 2008 and at the end of the year 2008. …

Suppose that the graph below shows an aggregate demand-aggregate supply (AD-AS)

Suppose that the graph below shows an aggregate demand-aggregate supply (AD-AS) model of the U.S. economy at the end of the third quarter of 2008 and at the end of the year 2008. …

Suppose that the hourly wage is Dollars 10 and the price of each unit of capital

Suppose that the hourly wage is Dollars 10 and the price of each unit of capital is Dollars 20. The price of output is constant at Dollars 40 per unit. The production function is …

Suppose that the income elasticity of demand for land is +0.75. The unit commuti

Suppose that the income elasticity of demand for land is +0.75. The unit commuting cost (cost per mile) is the sum of monetary cost (30 cents per mile) and time cost (opportunity …

Suppose that the income of buyers in a market increases and a technological adva

Suppose that the income of buyers in a market increases and a technological advancement also occurs. What would we expect to happen in the market for a normal good? The equilibriu…

Suppose that the income of the average Canadian household increases because a la

Suppose that the income of the average Canadian household increases because a larger percentage of women enter the labour force. What do you think will happen to demand for the fo…

Suppose that the individual demand for a product is given by Q = 1000 - 5P. Marg

Suppose that the individual demand for a product is given by Q = 1000 - 5P. Marginal revenue is MR = 200 - 0.4Q. There are no fixed costs and so marginal cost, which is constant, …

Suppose that the inflation rate falls.If the Federal Reserve wants to increase i

Suppose that the inflation rate falls.If the Federal Reserve wants to increase investment to increase therate of growth in the economy, it is not enough to lower thenominal intere…

Suppose that the inflation rate is currently 5% and that most investors believe

Suppose that the inflation rate is currently 5% and that most investors believe that inflation will remain at this level indefinitely. You are convinced, however, that the inflati…

Suppose that the insurance company would set the premium by imposing a zero prof

Suppose that the insurance company would set the premium by imposing a zero profit restriction. That is, the premium would be set to be (1+L)EB, where L is the loading factor and …

Suppose that the interest rate has no effect on investment. Assume that the econ

Suppose that the interest rate has no effect on investment. Assume that the economy starts at the natural level of output. Suppose there is a shock to the variable z, so that the …

Suppose that the interest rate has no effect on investment. In which of the foll

Suppose that the interest rate has no effect on investment. In which of the following cases might this happen? A. Firms may be so pessimistic about sales that they do not want to …