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Preclusion of borrowing in the Ramsey model Consider the household optimization. How do the results change if consumers are not allowed to borrow, only to save?
Devoting a larger share of national output to investment would help to restore rapid productivity growth. Under what conditions is the statement accurate?
Under what circumstances does absolute convergence imply a decline in the dispersion of per capita income?
How might liability dollarization worsen the financial market disruption caused by a sharp depreciation of the domestic currency against the dollar?
which looked at data for a group of currently industrialized countries, found that those that were relatively poor a century ago subsequently grew more quickly.
Why would Argentina have to give the United States seignior age if it gave up its peso and completely dollarized its economy?
How might a developing country's decision to reduce trade restrictions such as import tariffs affect its ability to borrow in the world capital market?
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?
Do price reductions always result in higher profits? Example, if demand for firm's product is price inelastic, will firm increase its profits by cutting price?
How would the domestic nominal interest rate be related to the foreign nominal interest rate? What if the crawling peg is not fully credible?
Given that I = $20,000, P=$10, and P'=$5, determine: A. The price elasticity, e(Q,P) B. The income elasticity, e(Q,I)
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?
Question: An increase in elasticity of demand will increase monopoly power. This is absolutely correct.
A barrier to entry creates an advantage for incumbents over new arrivals. True or false, explain.
How can the firm use the information contained in the elasticity coefficient to determine pricing policy for profit maximization?
How would this affect the elasticity of demand for gasoline? Would the tax be more or less effective now in reducing imports?
Problem: Alternative institutional environments. What does this result imply about the Pareto optimality of the decentralized outcomes?
What is the arc cross elasticity of demand between Stopcays’ toothbrush and Decayfighter toothbrush?
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?
Also note, the data is in log. Remember the secret for determining elasticity when the regression is log-log.