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it is fairly common for an industrial cluster to break up and for production to move to locations with lower wages when
consider a situation similar to that in figure 7-3 in which two countries that can produce a good are subject to
evaluate the relative importance of economies of scale and comparative advantage in causing the followinga most of the
give two examples of products that are traded on international markets for which there are dynamic increasing returns
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a us dollar costs 75 norwegian kroner but the same dollar can be purchased for 125 swiss francs what is the norwegian
traders in asset markets suddenly learn that the interest rate on dollars will decline in the near future use the
suppose the one-year forward exchange rate is per euro and the spot exchange rate is per euro what is the forward
multinationals generally have production plants in a number of countries consequently they can move production from
suppose the dollar interest rate and the pound sterling interest rate are the same 5 percent per year what is the
calculate the dollar rates of return on the following assetsa a painting whose price rises from to in a yearb a bottle
our model takes the price level as given in the short run but in reality the currency appreciation caused by a
you observe that a countrys currency depreciates while its current account worsens what data might you look at to
if a government initially has a balanced budget but then cuts taxes it is running a deficit that it must somehow
suppose there is a permanent fall in private aggregate demand for a countrys output a downward shift of the entire
nominal interest rates are quoted at a variety of maturities corresponding to different lengths of loans for example in
discuss the following statement when a change in a countrys nominal interest rate is caused by a rise in the expected
explain how the nominal dollareuro exchange rate would be affected all else equal by permanent changes in the expected
consumer reports you want to buy a used car specifically a 1999 zephyr according to consumer reports half the 1999
refer to exercises 3 and 4 an atmospheric scientist notices that the slope of the least-squares line in the study
in a study to determine the relationship between ambient outdoor temperature and the rate of evaporation of water from
three engineers are independently estimating the spring constant of a spring using the linear model specified by hookes
in order to determine whether to pitch a new advertising campaign more toward men or women an advertiser provided each
eruptions of the old faithful geyser in yellowstone national park typically last from 15 to 5 minutes between eruptions
in an experiment to estimate the acceleration of an object down an inclined plane the object is released and its