If the Fed lowers the federal funds rate so that the exchange rate falls, then imports ________ and exports ________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decrease
Q: give brief meaning and example of institutional, political, and economic rigidities in the philippin...
A: Economic institutions are well-established arrangements and structures that are part of a culture or...
Q: What is economics most concerned with? keeping interest rates low O making money allocating scarce r...
A: What is economic most concerned with.
Q: The graph shows the demand curve for wallets and the market price of a wallet. Price (dollars per wa...
A: Answer -
Q: Competition between firms results in: a. Lower prices b. Greater output c. Less deadweight loss d. a...
A: When there are multiple businesses in a market, competition develops. The perfectly competitive mark...
Q: If the government wants to reduce unemployment by influencing the level of activity in the economy, ...
A: Unemployment is the state of being able to work, actively looking for job, but unable to find any. I...
Q: Given the existing problems with its airbag system, Honda Motors has experienced a decline in sales...
A: An airbag is a driver and passenger system in a car that uses a bag that inflates and deflates quick...
Q: If the consumer’s income is held constant, how would the prices of goods X and Y have to change to m...
A: A consumer can consume more of a commodity in two ways: either, his overall income increases - whic...
Q: COVID-19 has impacted the global economy, spreading across nations with alarming speed, infecting mi...
A: Economic recoveries are measures taken by governments to reallocate resources to aid a sector or an ...
Q: Which methods would you use to attract applicants to the international call centre in the United Kin...
A: There are various methods used to attract the applicants to the international call center in the Uni...
Q: Compare and contrast natural resources and natural capital
A: Resources: An asset is an actual material that people need and worth like land, air, and water. Asse...
Q: The first cost is $300,000; the annual operating cost is $40,000; the annual labor cost is $60,000. ...
A: Below is the given values: First cost = $300000 Annual operating cost = $40000 Annual labor cost = $...
Q: At what price does Shortage and Surplus occur ? Once a market has shortage and Surplus, then what ha...
A: Answer to the question is as follows:
Q: Determine if the following statement is normative or positive: Americans should have access to food,...
A: Positive economics is a stream of economics focused on identifying, quantifying, and explaining econ...
Q: Assume Reginald has the option of choosing between two goods, X and Y, both of which have a positive...
A: Answer - "Thank you for submitting the question.But, we are authorized to solve only "3" subparts. F...
Q: 4. (a) Profit-maximizing price must equal p = S MC, where e is the price elasticity of demand. What ...
A: 4(a) As per the rule of profit maximization we have marginal revenue (MR)= marginal cost (MC) MR=MCo...
Q: a. Give 3 case examples of how politics can serve as a remedy for conflicts. Give one example for ea...
A: This chapter is related to poltical economics chapter. Every Govt. faces tough decisions about the a...
Q: Why aren't more resources being allocated to sufficient prudential oversight of the financial system...
A: Countries where there are more working women, quantity of workers is more. People who are working o...
Q: For which product is the income elasticity of demand most likely to be negative? A. Bread B. Gas C....
A: Income elasticity of demand (Yed) is the ratio of %change in Qd(quantity demanded) of a product and ...
Q: took a loan of P560,000 from L.A Finance to purchase a car. If the company charges compound interest...
A: how much will he have to pay after 5 years? Detailed calculation given below,
Q: With an example, illustrate how the multiple deposit contraction process influences money supply.
A: Deposit Contraction - If banks have extra reserves, they can lend more and expand the money supply. ...
Q: Question 9 0/ 10 A computer printer sells for $376 after a 12% discount. What was its original (list...
A: Computer printer sells for $376 after 12% discount. Hence the original price = 376+12% ...
Q: How does the coronavirus affect the labor market in France? (Keyword: employment and unemployment in...
A: The economies around the globe are involved in various economic and financial activities. These econ...
Q: the endpoint method to compute the price elasticity on D1. 10 55 D, D2 80 90 100 m point A to point ...
A: Use the endpoint method to compute the price elasticity on D1.
Q: Money borrowed today is to be paid in 11 equal payments at the beginning of each quarter. If the int...
A: In the question above, it is given that : Amount = P 23469 Rate of Interest = 3% = 0.03 Time period...
Q: 1. Externality. A restaurant owner is considering which smoking policy should be established in his ...
A: Hi! Thank you for the question, as per the honour code, we are allowed to answer three sub-parts at ...
Q: A store sells two types of computer sleeves, A and B. The weekly demand and cost functions are Турe ...
A: Here we calculate the profit by using the given demand and cost function , so the calculation of the...
Q: Automatic stabilizers are at work if, as real GDP increases, ________. a. transfer payments decreas...
A: When talking about automatic stabilizers, they are the government actions that does not require to c...
Q: Engineering Economics: Makulay ang Buhay Corporation have agreed to shoulder the funds needed for ro...
A: In the question above, it is given that : Makulay ang Buhay Corporation have agreed to shoulder the...
Q: Reasons for supply curves being positively sloped include: A) typically, as output rises, unit cost...
A: Supply refers to the quantity of the good which the producers are willing to produce an offer for sa...
Q: Below is the production possibility schedule for an economy. Max. Annual output Quantity of fish (po...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Question 4 Senator Maki argues that replacing the income tax with a national sales tax would increas...
A: Answer (4): Senator Maki argues that sales tax will increase the level of output, where he is focusi...
Q: draw a general demand curve and label it D. Then shift the curve to the left or the right depending ...
A: In the beef market, a change in any demand determinants, except own price, will lead to shift the de...
Q: Given the schedule, find the demand function/equation. * Price (P) Quantity Quantity Demanded (Qd) S...
A:
Q: A and B are best friends for almost 20 years already. They live next to each other and hang out with...
A: Answer-
Q: our first job after graduation is in the statistical office of the small country Exemplia, where mos...
A: Given: 2020 2021Price Quantity Price QuantityOlives (domestic consumption) 2 2,000 2.20 2,100Olives ...
Q: In reality the balance of payments may not balance due to A) net trading by the Bank of Englan...
A: Answer: Balance of payment records all the transactions that take place between the residents of a c...
Q: Which of the following statements about a budget line is correct? The opportunity cost of the good i...
A: Budget line is the curve represents the two possible combinations of goods which can be bought with ...
Q: Using the formula for present worth (1+n)t In how many years will $10000 accumulate to $25000 at 18%...
A: Here we calculate the number of year by using the given formula and information , so the calculation...
Q: An example of a tight monetary policy is: A) a decrease in the liquidity ratio. B) an increase...
A: The economics as a study is based upon the idea that the resources which are present with the econom...
Q: 1. Using the data, the following equation was obtained by OLS: log(salary) = 4.32 + 0.600 log(sales)...
A: Answer-
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are ...
A: Answer-
Q: Ceteris paribus, if the market demand for a product increases, what will happen to the equilibrium q...
A: Let's assume the simple market demand and market supply graph shown below.
Q: There are three people who consume public and private goods. As usual, the public good is x, and rep...
A: Given that; The utility function of the person 3 is u3(x,y3)=3Inx+y3 Budget constraint =x+y3=10 Pub...
Q: The market for N-95 masks is perfectly competitive. Market Demand is given by Q=310-2P and Market Su...
A: (Market Demand:Q=310-2PMarket Supply:Q=2PPrice ceiling=$44Now,Equilibrium price is achieved when:Mar...
Q: 2. Explain whether the following statement is true or false. "Governance is exercised only by the go...
A: Structures and processes aimed to provide accountability, transparency, responsiveness, rule of law,...
Q: Suppose two Cournot firms selling identical products attempt to collude, calculate the profit to be ...
A: Let's assume there are two firms, i.e., Firm A and firm B Qa -> quantity of firm A Qb -> quant...
Q: Let's assume you’ve found the following labor demand and supply curves: Lp = 30 – w Ls 2w (a) Solve ...
A: Given Labor demand LD=30-w ... (1) Labor supply LS=2w ...
Q: The demand for Hawaiian vacations is inelastic. Are the following statements true or false? A. If m...
A: Elasticity of demand is used in Economics to calculate the change in the quantity demanded of any go...
Q: The demand schedules of three individuals (Tamer, Dina, and Assel) are shown. If they are the only t...
A: Here we calculate the market demand at price $6 by using the given information and choose the correc...
Q: What is the ordinary simple interest earned on P 35, 000 for the period from April 3, 2020 to Octobe...
A: SI is a method of calculating the amount of interest that must be paid on the principal, and it is c...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not?If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and exports ________. a. increase; increase b. increase; decrease c. decrease; increase d. decrease; decreaseChoose the correct answer and give correct explaination 1. A central bank can fix an exchange rateA. In perpetuityB. Only for as long as the market believes that it has the political will to do so.C. Only for as long as it has reserves of goldD. Only for as long as it has independence of monetary policy.
- 1. When a central bank sterilizes a foreign exchange purchase, it offsets the purchase with a. an open market purchase to increase the money supply b. an open market sale to decrease the money supply c. an open market purchase to keep the money supply from changing d. an open market sale to keep the money supply from changingTo fight the economic slowdown from the Covid-19 pandemic, the Bank of Canada decides to expand the money supply. a) Using diagrams, carefully explain whether or not this policy would be effective under a fixed value for the exchange rate? b) What is the effect of this policy on the interest rate in the long run? Explain your answer.If the Fed lowers interest rates, the value of the US dollar will___ which will lead do a(n)____ in spending on US goods. a) increase, decrease b) decrease , decrease c) decrease, increase d) increase, increase
- Kindly note I need all answers It will gives you upvote QUESTION 13 For the following questions assume that the Fed is committed to price level stability. Initially, the exchange rate is 1.0. The US interest rate starts at 0.15 and the Fed increases the money supply by twenty percent (0.2) reducing the interest rate to 0.01. Assume that the economy completely adjusts after two years. Two years from now, the exchange rate is. 1.2 0.80 1.0 1.10 QUESTION 14 What is the change in the price level over the next two years 0.20 0.10 0.0 -0.10 QUESTION 15 Starting from today, what is the change in the interest rate over the next two years -0.10 0.00…Use the information in the table below to calculate the change in the long-run Arakko ignis / Krakoan xcoin exchange rate (Ei/x). Specifically, does the Arakko ignis appreciate or depreciate, and by what percentage? Country - Change in Money Supply (µ) - Growth rate (g) Arakko 30% –4% Krakoa 10% 6%Consider the following: C = 400 + 0.5·(Y – T) I = 80 + 0.1·Y – 1000·(i – πe + x)NX = 0.01·Y*– 0.1·Y – 4·(E – 100) G = 600 T = 480 Y* = 20,000 The central bank anchored inflation expectations at target inflation rate of π̅= 0.02. Household borrowing rates and businesses include a 4% risk premium over policy rate (i) so: x - 0.04. The central bank has set policy rate equal to 2% (, ī = 0.02). The Exchange rate (E) is 100. Expected future exchange rate is also 100. Then assume the governent cuts tax level from T=480 to T′ = 400: a) Find the short run equilibrium level of output and trade balance? a) If the economy was at potential before, what effects will the tax cut form 480 to 400 have on investments and on trade balance in the medium run?
- Consider the following: C = 400 + 0.5·(Y – T) I = 80 + 0.1·Y – 1000·(i – πe + x)NX = 0.01·Y*– 0.1·Y – 4·(E – 100) G = 600 T = 480 Y* = 20,000 The central bank anchored inflation expectations at target inflation rate of π̅= 0.02. Household borrowing rates and businesses include a 4% risk premium over policy rate (i) so: x - 0.04. The central bank has set policy rate equal to 2% (, ī = 0.02). The Exchange rate (E) is 100. Expected future exchange rate is also 100. a) Find short-run equilibrium level of output (Y) and trade balance (NX). Is there a trade deficit or surplus? b) Assume the governent cuts tax level to ?′ = 400. What is the new short run equilibrium level of output (?′) and trade balance (NX'). Is this economy suffering from twin deficits (trade and budget). What policy change could help?c) what is the value of the fiscal multiplier fromt he tax cut? if it were a closed economy would it be greater or smaller? d) What effects will the tax cuts have on investments and on the…show by a diagram and also explain in detail how a decrease in expectations from US deposits held in UK banks will affect the pound sterling/US dollar ERGive typing answer with explanation and conclusion Consider country A, which uses a fixed exchange rate system pegging its currency value against the US dollars and has perfect capital mobility. In the short run, if the U.S. central bank, the Federal Reserve Board of the U.S., lowers the money supply of the U.S., then Select one: a. The Reserve Bank of Country A would have to lower its money supply. b. The Reserve Bank of Country A would have to raise its money?