Guideline for the design of monetary policy
Suppose a central bank does not satisfy the Taylor principle. Use a graph to analyze the impact of a supply shock. Does this analysis contradict or reinforce the Taylor principle as a guideline for the design of monetary policy?
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Using appropriate diagrams and notations, carefully explain the relationship between elasticity, total revenue and marginal revenue.
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The foreign currency is the functional currency for a foreign subsidiary. At what exchange rate should each of the following accounts be translated?
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