1) Mundell – Fleming model and theory of optimum common
currencies:
a) Assuming perfect capital mobility and flexible exchange rates,
explain the impact on the Irish economy of a decrease in interest
rates in the U.S. In your answer, clearly indicate the effect on
income, rate of interest, balance of payments. (Show your answer
with the help of an IS-LM-BP diagram and explain the mechanisms.
Consider Ireland a small open economy with flexible exchange rates.
b) Are Monetary and Fiscal policies effective in the case of
question (a)? Explain with graphs.
c) Discuss the notion of unholy trinity.
In: Economics
3) ________ is a particular problem in ________ , which contain a disproportionately large share of the world's wild species, but which are also under great pressure to pursue modern economic development. A. Habitat destruction; developed countries B. Habitat destruction; developing countries C. Biological uniformity; developed countries D. Biological uniformity; developing countries
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1. A rise in the real rate of interest ________ the opportunity cost of holding an inventory of a given size, and therefore ________ desired investment expenditure.
Select one:
a. decreases; decreases
b. decreases; leaves unaffected
c. increases; decreases
d. decreases; increases
e. increases; increases
2. If nominal national income increased by 20% over a certain period of time while real national income increased by 10%, then
Select one:
a. everybody in the economy became worse off.
b. inflation has decreased during this time period.
c. the price level has increased by approximately 10%.
d. the price level has declined by about 10%.
e. the labour force increased by 10%.
3. Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be
Select one:
a. no change in Canada's production possibilities boundary.
b. to move its production possibilities boundary outward.
c. to move it along its production possibilities boundary.
d. to move its production possibilities boundary inward.
e. to move it beyond its production possibilities boundary.
4. Consider a simple macro-model with demand-determined output. An exogenous increase in the domestic price level will ________ the real value of the private sector's wealth, which leads to ________ in autonomous consumption and thus ________ shift in the AE function.
Select one:
a. increase; an increase; an upward
b. increase; a decrease; a downward
c. increase; an increase; a downward
d. reduce; a decrease; a downward
e. reduce; an increase; an upward
5. A farmer raises free-range chickens, which he sells to a company for $1000. That company sells the processed chickens to a grocery store for $1600, which in turn produces roasted chickens which are sold to the public for $2400. Based on this information, the value of total output is equal to
Select one:
a. $4000
b. $2400
c. $1600
d. $5000
e. $1400
In: Economics
i need a 7 min persuasive speech about the effects of pollution today
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In focus on interest rate risk, can you explain why banks offer higher interest rates on longer term CD's than they do on short term CD's?
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Contracting around observable characteristics to try and solve information problems are examples of
A. first best efficient outcomes
B. second best efficient outcomes
C. positive externalities
D. negative externalities
E. creative destruction
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Given the Demand function from Part 1: D(p) = 64 2p , The monopolist's cost is equal to C(Q) = Q2 + 2Q:
PART II. Now take the same demand function as in Part I but imagine that the market has two firms instead of 1. Also assume that the marginal cost of each firm is equal to 4. Market structure is therefore characterized as a duopoly. Suppose that firms compete by choosing their output levels simultaneously.
(14) (2 points) Write down the profit expressions of Firms 1 and
2.
(15) (4 points) Derive the best-response functions of Firms 1 and
2.
(16) (3 points) Plot the best-response functions of Firms 1 and
2.
(17) (2 points) Find the output choice of each firm. Show it on the
graph you drew in (17). For 18-19, first state if the statement is
True or False. Then, give a brief explanation.
(18) (3 points) Oligopolies create less deadweight loss than
monopolies.
(19) (3 points) Consider a duopoly where firms compete by choosing
quantities one after the other. The firm which makes its output
choice first, enjoys more profits as it can set a higher price.
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1) Suppose the cost of basket is Peu = 300 euros in the Eurozone and PTurkey =800 liras in Turkey. Suppose the home country is Turkey, and the exchange rate is 1.8 liras per euro.
a) Write the absolute purchasing power parity (PPP) equation. Check to see whether PPP holds for the lira-euro exchange rate.
b) Calculate the real exchange rate. Determine whether lira is over-valued, under-valued or neither.
c) Write two reasons for why the tendency for PPP to hold is weak in the short-run.لا
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Write a research about The effect of postponing consumer bank premiums for 6 months on the Kuwaiti economy?
5-6 pages maximum
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Explain how a decrease in productivity growth is likely to affect a country’s macroeconomic performance (detailed answer please)
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Australian company Too Cool has developed two new virtual reality games based on The Hunger Games and X-Men movie franchises and wants to market these offshore. Select one country and develop an international promotion strategy for the company’s entry into that country. In particular, consider the following: • Culture • the consumer behavior/buying process, • levels of economic development and • constraints such as media availability and language. In your response, consider the different promotional tools that could be used (e.g. advertising, sales promotion, direct marketing or social media) in the context of the country, product, consumer and competition.
In: Economics
Alienware and Foxconn are two multinational electronics company
operating in a homogeneous computer hardware market. The
engineering department at Alienware has been steadily working on
developing a patented technology that has enabled the firm to
reduce its marginal cost and emerge as a leader in the
market.
The inverse demand function for the market is P = 1200
- 6Q
Alienware's costs are TC = 60QA and Foxconn's costs
are TC = 120QF.
The current output for Alienware is QA = 100 while
Foxconn produces QF = 50. The current price is P =
300.
Ignoring antitrust possibilities, suppose Alienware makes an offer to Foxconn and they are in the process of negotiating a merger.
What is the potential price of the product after the merger?
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In view of the Coronavirus epidemy, the Bank of Canada along with most advanced nations’ central banks has cut its policy interest rate by 1.5% to 0.25%.
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What role was played by quantitative easing (QE) in the U.S. after the “Great Recession”? Was this QE necessary or not? (Explain in great detail with reference to economic policies)
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