Category: business-economics

Order the answer to: Let’s translate between newspaper jargon about exchange rates and the

business-economics

Order the answer to: Let’s translate between newspaper jargon about exchange rates and the

Posted By George smith

Question
Let’s translate between newspaper jargon about exchange rates and the economic reality of exchange rates.
a. Last week, the currency of Frobia was trading one for one with the currency of Bozzum. This week, one unit of Frobian currency buys two

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Order the answer to: A. According to purchasing power parity theory, a country with

business-economics

Order the answer to: A. According to purchasing power parity theory, a country with

Posted By George smith

Question
a. According to purchasing power parity theory, a country with massive inflation should also experience a massive fall in the price of its currency in terms of other currencies (a depreciation). Is this what happened in Zimbabwe, or did the opposite occur?
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Order the answer to: A. According to Table 38.1, how many Japanese yen could

business-economics

Order the answer to: A. According to Table 38.1, how many Japanese yen could

Posted By George smith

Question
a. According to Table 38.1, how many Japanese yen could you get for 1 dollar in September 8, 2010? Use the Yahoo currency converter to find out how many yen you could buy for a dollar today.
b. Given your answer

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Order the answer to: A. Consider two headlines: “Foreigners are bringing bags of money

business-economics

Order the answer to: A. Consider two headlines: “Foreigners are bringing bags of money

Posted By George smith

Question
a. Consider two headlines: “Foreigners are bringing bags of money to the U.S. to grab property” vs. “Record U.S. trade deficit.” How can both be true simultaneously?
b. Consider two headlines: “Money is fleeing the U.S. faster than ever” vs. “Record

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Order the answer to: Practice with the balance of payments:
Current account = Capital account

business-economics

Order the answer to: Practice with the balance of payments: Current account = Capital account

Posted By George smith

Question
Practice with the balance of payments:
Current account = Capital account + Change in official reserves
a. Current account = 2$10, Capital account = $15. What is the change in reserves?
b. Current account = 2$10, Change in reserves

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Order the answer to: A. When the Japanese government slows the rate of money

business-economics

Order the answer to: A. When the Japanese government slows the rate of money

Posted By George smith

Question
a. When the Japanese government slows the rate of money growth, will that tend to strengthen the yen against the dollar or weaken the yen against the dollar?
b. When the Japanese government slows the rate of money growth, will the

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Order the answer to: Start with the facts about the trade deficit (also known

business-economics

Order the answer to: Start with the facts about the trade deficit (also known

Posted By George smith

Question
Start with the facts about the trade deficit (also known as the “balance of trade”), the most widely discussed part of the balance of payments. Head to the database run by the Federal Reserve Bank of St. Louis, research.stlouisfed.org/fred2. In the search

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Order the answer to: In February of 2009, Congress passed the American Recovery and

business-economics

Order the answer to: In February of 2009, Congress passed the American Recovery and

Posted By George smith

Question
The 85% of the $825 billion stimulus package spent by the end of the second quarter in 2011, amounting to $701.3 billion, was funded through deficit financing and added to the national debt. For comparison to the real GDP figures, $701.3 billion

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Order the answer to: We usually think about crowding out as a decrease in

business-economics

Order the answer to: We usually think about crowding out as a decrease in

Posted By George smith

Question
a. Starting from this initial position, the economy is hit by one shock: a large decrease in government purchases perhaps caused by the end of a war. Holding the growth of C, I, and X constant for a moment, illustrate this shock,

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Order the answer to: If the U.S. government wanted to, it could just say

business-economics

Order the answer to: If the U.S. government wanted to, it could just say

Posted By George smith

Question
If the U.S. government wanted to, it could just say that everyone who is unemployed is “employed in job search” and receiving a paycheck for this “work,” and the government could claim that these government employees are producing “job search services.” Recall

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