In a closed economy, if the government wants to increase aggregate demand, it cangovernment purchases orta: O increase, increase increase, decrease decrease, increase decrease, decrease
Q: a. Suppose that, ceteris paribus, the government raises taxes.Diagram the effects of such a change…
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A: given that, C=0.5(Y-T) T=1000 I=1500-250r G=1500 Md/p=0.5Y-500r Ms=1000
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- What happened here? All data in real $bn. NX + Y NX new NX old O a. our currency appreciated, raising our exports lowering our imports. O b. our currency depreciated, lowering our exports and increasing our imports. O c. None of the answers offered are accurate. O d. our currency depreciated, raising our exports and lowering our imports. O e. foreign income increased, raising our exports only Which of the following would be the effects of a rise in consumer optimism? You are strongly advised to graph this question before answering it. Shift upwards of the whole C function II Shift upwards of the whole S function II Shift downwards of the whole 5 function Iv A movement upwards and along stable Cand S functions. i only i and i Oc iv only O b. d. i and i O e. None of the answers offered are accurate. (All data is in real $ bn). What could have caused the change depicted below? BB=T-G Real $ bn BB new ВB old Y O a. Government decreased its spending on goods and services. O b. Government…Question 12 Other things equal, which of the statements below is false? O a. A trade deficit will keep GDP constant if all imported goods and services are sold at cost in the domestic economy O b. A trade deficit will increase GDP if all imported goods and services are sold at below cost in the domestic economy Oc. A trade deficit will decrease GDP if all imported goods and services are sold at below cost in the domestic economy O d. A trade deficit will increase GDP if all imported goods and services are sold at above cost in the domestic economy rornonseAnswer the following questions 1.a. Today many Central Banks around the World are thinking of increasing interestrates. Why? What could be the dangers of increasing those interest rates toomuch?1.b.What will happen to the trade balance and the real exchange rate of a smallopen economy when govemment purchases increase, such as during a war?Does your answer depend on whether this is a local war or a global war? Onthose grounds, In the current situation of the Russian invasion, what shouldhappen between the dollar and the Euro?
- D 0 Question 15 91000 AERIN Iris Meado Question 16 BRACELETSIALE... Cigarettes and nicotine patches have a positive but small cross-price elasticity. Ceteris paribus, a cigarette tax on consumers would imply that: Ceteris paribus, the Australian dollar nominal exchange rate: O There will be a large movement up the demand and supply curve of cigarettes and demand for nicotine patches would rise by a large amount O Demand for cigarettes would fall and demand for nicotine patches would fall by a small amount O The demand for cigarettes would fall and demand for nicotine patches would rise by a small amount O There will be a small movement up the demand and supply curve of cigarettes and demand for nicotine ches would fall by a large amount UTS O will rise if Australian interest rates fall O will fall if Australian inflation falls relative to inflation in our trading partners will fall if Australian interest rates rise will rise if Australia's trading partners income rises The Eleventh…The Foreign Exchange MarketThe Jamaican dollar experienced a rapid depreciation in the exchange rate during 2020 due to thepandemic's impact on key sectors. The exchange rate in 2020 closed at J$142.65 to US$1.00,after opening the year at J$132.57, resulting in a 7.6 per cent depreciation. As at FridaySeptember 16, 2022, the exchange rate was at approximately $ JA 150 to US $1 Arguments for and against fixed exchange rate.The Foreign Exchange MarketThe Jamaican dollar experienced a rapid depreciation in the exchange rate during 2020 due to thepandemic's impact on key sectors. The exchange rate in 2020 closed at J$142.65 to US$1.00,after opening the year at J$132.57, resulting in a 7.6 per cent depreciation. As at FridaySeptember 16, 2022, the exchange rate was at approximately $ JA 150 to US $1.QUESTIONGiven this rapid depreciation of the Jamaican dollar against the US dollar,should the government of Jamaica adopt a Fixed Exchange Rate regime ormaintain the current Floating Rate regime?Outline to answering the question Clear distinction between fixed exchange rate and floating exchange rate, Examples of countries that uses fixed exchange rate regime and those that uses floatingexchange rate regime and Arguments for and against floating exchange rate
- What would be the effect of a devaluation on a country’s imports and exports? If a country imports most ofthe goods included in the basket of goods and servicesused to calculate the CPI, what do you think the effectwill be on this country’s inflation rate?Which of these situations will cause the depreciation in the value of the UAE Dirham? O a. Increase in the exports of oil and less imports of other things O b. Lower exports of oil and a decrease in the gross domestic product O c. Lower exports of oil and an increase in gross domestic product O d. Increase in the price of oil and increase in exports of minerals and gassesWhen the nation of Ectenia opens itself to worldtrade in coffee beans, the domestic price of coffeebeans falls. Which of the following describes thesituation?a. Domestic production of coffee rises, and Ecteniabecomes a coffee importer.b. Domestic production of coffee rises, and Ecteniabecomes a coffee exporter.c. Domestic production of coffee falls, and Ecteniabecomes a coffee importer.d. Domestic production of coffee falls, and Ecteniabecomes a coffee exporter.
- Suppose the United States decides to subsidize theexport of U.S. agricultural products, but it does notincrease taxes or decrease any other governmentspending to offset this expenditure. Using a threepanel diagram, show what happens to nationalsaving, domestic investment, net capital outflow, theinterest rate, the exchange rate, and the trade balance.Also explain in words how this U.S. policy affects theamount of imports, exports, and net exports.Real Interest A Ra te World interest rate, fo Real Exchange Ra te Ex E Ę₂ Supply of Loare ble Funds Derrand for Loa rable Funds Quantity of Loanable Funds Supply of Canadian Dollars (5-1) D₁ Do Quantity of Dollars Refer to the Figure 13-2. Suppose that these diagrams refer to Canada. If the interest rate was initially at r0 and Japan voluntarily restricted its exports to Canada, what would happen to the interest rate? a. It would stay at r0. O b. It would decrease because supply would shift right. OC. It would increase because supply would shift left. O d. It would decrease because demand would shift left. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.A corporate treasurer tells you that he has just negotiated a five-year loan at a competitivefixed rate of interest of 5.2%. The treasurer explains that he achieved the 5.2% rate byborrowing at six-month LIBOR plus 150 basis points and swapping LIBOR for 3.7%. He goeson to say that this was possible because his company has a comparative advantage in thefloating-rate market. What has the treasurer overlooked? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.