Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Explain the purchasing power parity theory of the long-run behavior of the exchange rate. Indicate whether there are any circumstances.
What costs are associated with imperfectly anticipated inflation? Discuss them carefully. Who loses, and who gains, when inflation is higher than we expect?
Why do we call mechanisms such as proportional income taxes and the welfare system automatic stabilizers?
Using your knowledge of the amount of time required for the many components. Can you think of any problems with using fiscal policy to stabilize the economy?
What is the full-employment budget surplus, and why might it be a more useful measure than the actual, or unadjusted, budget surplus?
Calculate the aggregate unemployment rate. How will this affect the aggregate unemployment rate?
Should the United States index its wages and prices? How would your answer differ if you expected that nation would face a period of extremely high inflation?
What are the pros and cons of these two arguments? What, in your opinion, are good long-run goals for reducing inflation and unemployment?
Discuss the differences in the unemployment patterns of adults and teenagers. What does this imply about the types of jobs that the groups are seeking?
Why would Argentina have to give the United States seignior age if it gave up its peso and completely dollarized its economy?
Why Would the countries have borrowed more or less if their economies had been privatized earlier?
Does this mean that countries whose external government debt is largely the result of capital flight face no debt problem?
What is the point price elasticity of demand for Fantasy pinball machines when P = $150, Px = $100, U = .12, A = $200,000 and N = .35?
What is the representative household's budget constraint? What long-run value of µ would be optimally chosen in this model?
Analyze how do you think this would affect the ratio of international asset trade to GNP for Home and Foreign?
Over the 1980s, the share of U.S. banks in London banking activity declined. Can you suggest a connection between these two developments?
The Swiss economist Alexander Swoboda has argued that the Eurodollar market's early growth was fueled. Why Do you agree with Swoboda's interpretation?
When a U.S. bank accepts a deposit from one of its foreign branches that deposit is subject. What do you think is the rationale for these regulations?
Movements in the euro's external exchange rate can be seen as goods-market shocks. What would have happened had Spain retained its old currency, the peseta?
Find macro data on the British economy's performance since 1998 (inflation, unemployment, real GDP growth) and compare these with euro zone data.
Discuss the statistical significance of the parameter estimates a,b,c, and d using the p-values. Are the signs of b, c, and d consistent with theory of demand?
How concerned do you think this company would be about the impact of a recession on its sales? Explain.
How will looming fears of a recession (expected to decrease consumer's incomes by 4% over the next year) impact quantity of coffee Starbucks expects to sell?
U.S. foreign exchange intervention is sometimes done by an Exchange Stabilization Fund, or ESF. How do ESF operations affect the foreign exchange risk premium?
Why Would the international monetary adjustment mechanism have been symmetric or asymmetric?