Department of Economics University of California‚ Berkeley Fall 2012 Econ 182 Solutions Problem Set 8 Problem 1. Exchange Rates and International Transmission a. Suppose that the US engages in a monetary expansion. Since exchange rate is pegged to the US dollar‚ country X’s monetary authorities are forced to expand their money supply as well (recall that i = i* under FixER). Interest rates fall in country X‚ output expands‚ and of course the exchange rate remains unchanged. On the AA-DD diagram
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Problem Set 1 Gmt 201 Autumn‚ 2010 1. Consider the markets for DVD movies‚ TV screens‚ and tickets at movie theaters. a. For each pair‚ identify whether they are complements or substitutes: • • • DVDs and TV screens DVDs and movie tickets TV screens and movie tickets b. Suppose a technological advance reduces the cost of manufacturing TV screens. Draw a diagram to show what happens in the market for TV screens. c. Draw two more diagrams to show how the change in the market for TV screens affects
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Team B Learning Team Global Environments and Problem Sets ACC 300 Learning Team Global Environments and Problem Sets In the restaurant business there is a household name that controls a big part of the market share and has experienced a tremendous growth since it was founded in the 1940’s. McDonald’s growth has not just been in the United States but has grown rapidly grown in the global market. McDonald’s has adapted their business model to global environments
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2013 Cartoon Argument Confidence‚ Overconfidence‚ and Arrogance This cartoon drawing is a prominent example of a person who possesses overconfidence‚ confidence‚ and arrogance. I reassure you that I love people with confidence. I trust that the person who produced this cartoon feels the same way. Although confidence is a good trait to gain‚ there is a difference between confidence‚ overconfidence‚ and arrogance. Confidence is astounding. If a person acquires confidence then they are more likely
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Central Business District A problem in the world’s most CBDs is that the volume of traffic caused air pollution and was a danger to health and safety of shoppers and other pedestrians. Fortunately this problem does not apply to Vienna anymore. In the past it used to be a problem in Vienna too but the government acted fast and used certain precautions to end this problem. What they did was that they placed many different types of public transport like buses‚ trams and trains. These encouraged people
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Questions & Problems Set 5 Spring 2013 1. Explain why commercial banks are regulated and describe the major pieces of legislation enacted to prevent bank failures. Financial institutions are regulated because they provide products and services that the economy needs to function efficiently. Also they function in an environment where there is a great deal of asymmetric information‚ so they help in the screening process. Another reason why banks are regulated is to limit predatory
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Taylors Theorem: Taylor’s theorem gives an approximation of a n times differentiable function around a given point by a n-th order Taylor-polynomial. For analytic functions the Taylor polynomials at a given point are fixed order truncations of its Taylor’s series‚ which completely determines the function in some locality of the point. There are numerous forms of it applicable in different situations‚ and some of them contain explicit estimates on the approximation error of the function by its Taylor-polynomial
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The Coase Theorem In “The Problem of Social Cost‚” Ronald Coase introduced a different way of thinking about externalities‚ private property rights and government intervention. The student will briefly discuss how the Coase Theorem‚ as it would later become known‚ provides an alternative to government regulation and provision of services and the importance of private property in his theorem. In his book The Economics of Welfare‚ Arthur C. Pigou‚ a British economist‚ asserted that the existence
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Microeconomics (Fall 2014) Simon Bowmaker Problem Set 6 Submit at lecture (Monday‚ November 10) Write your answers on separate sheets of paper. Please include: your name your recitation teacher’s name day and time of the recitation NB: if your recitation takes place on Monday morning‚ you must submit your assignment to your teacher at the beginning of the recitation. 1. Assume a monopolist faces the following market demand: Q = 100 - 2P. The monopolist’s total cost function is TC = 5+8Q2. What
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73-240 | Recitation A Problem Set 1 Problem 1: Nominal GDP‚ Real GDP‚ Price Indices‚ and Inflation A. Nominal GDP in Year 1 = $430 Nominal GDP in Year 2 = $617.50 Growth Rate of Nominal GDP = 44% B. RGDP(1) in Year 1 = $430 RGDP(1) in Year 2 = $410 RGDP(1) growth = -4.65% RGDP(2) in Year 1 = $655 RGDP(2) in Year 2 = $617.50 RGDP(2) growth = -5.73% The answer differs depending on which base year you use because the relative prices of the goods in comparison to each other (price
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