Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
At a discount rate of 4 percent, what are the net benefits of this program? What would the net benefits be at a discount rate of 2 percent?
How would changes in the discount rate be likely to affect the comparison among these two options?
Contrast the different perspectives that would be involved in analyzing this proposal with economic impact analysis and cost-effectiveness analysis.
Consider the marginal cost curve associated with cleaning your dorm room. What would this marginal cost curve look like?
How will the new plant affect the US capital account? How is the US balance of trade ultimately affected?
Would this influence a foreign firm's decision to build a plant in the US or a domestic firm's decision to build a plant in Mexico?
In the example of international inflation and CIA. Find the implied forward exchange rate; Which currency is selling at a discount?
This restriction was lifted with NAFTA. Predict the long run term effects on the peso/$ exchange rate.
How would such a private money supply system, free banking, operate? Diagram the supply curve. How would the international monetary system operate?
With the perpetuity bond paying 100,000 pesos per year, suppose the dollar is expected to have an inflation rate of 2%. Find the dollar value of the peso bond.
Show the effects of money supply contraction on output, the price level, and interest rates when with a floating exchange rate.
Is country with relatively young population more or less likely to have unexpectedly high inflation? What about a country with a relatively wealthy population?
Does a government surplus have to lead to a trade surplus? Describe the link between the government surplus and the trade surplus.
What will arbitragers do? What will happen to government stocks of gold and silver? Which is the bad money?
Does Congress rationally consider the marginal costs and benefits of each newly proposed fiscal program? What law would make such behavior more likely?
During the expansion and recession phases of the business cycle, explain whether BOT surpluses or deficits are likely.
Assume you were forced to live without borrowing or lending. How would your life be affected? What is the moral for international economics?
An saying is that the way to get ahead in business is by using other people's money. Explain the analogy with the BOP accounts.
Describe the current and future BOP entries for the US and Costa Rica under each scenario. Contrast future NH for the US and Costa Rica.
Find the elasticity and explain what happens to import spending when the quantity of imports rises from 100 to 125 with a fall in price from $10 to $8.
What happens to the international price, the level of imports, and import expenditure?
What will happen to international prices, the level of exports, and export revenue?
When the government sells bonds to a foreign resident, what are the present and future effects on the BOP.
A Japanese carmaker that has been exporting to the US decides to invest $100 million to build a plant in the US. Predict subsequent changes in the BOP and NIL.
US firms own and operate branch plants in Central America where tens of millions of brassieres are exported. Why should these brassieres be counted as imports?