one year from now is assumed to be $1.66. What percentage depreciation does this reflect? • ($1 66 – $1 73)/$1 73 = –4.05% ($1.66 $1.73)/$1.73 4 05% Expected depreciation of 4.05% percent Inflation Effects on Exchange Rates • Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal‚ how should this affect the (a) U.S. demand for Canadian dollars‚ (b) supply of Canadian dollars for sale‚ and (c) equilibrium value of the Canadian dollar? Demand
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McKenzie 1 Lorraine McKenzie Professor Frazer Business 100 April 21‚ 2015 Assignment How does microeconomics affect business? Microeconomic is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in economy. Microeconomics looks at how a specific
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opportunities‚ (2) time preferences for consumption‚ (3) risk‚ and (4) inflation. Production opportunities are the investment opportunities in productive (cash-generating) assets. Time preferences for consumption are the preferences of consumers for current consumption as opposed to saving for future consumption. Risk‚ in a financial market context‚ is the chance that an investment will provide a low or negative return. Inflation is the amount by which prices increase over time. The interest rate paid
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THE UNIVERSITY OF THE WEST INDIES OPEN CAMPUS SEMESTER I √ SEMESTER II □ √ SUPPLEMENTAL/SUMMER SCHOOL □ Examinations of December / April/May □ / July □ 2011 Time: Paper No: Course Code and Name Title: ECON1002 INTRODUCTION TO MACROECONOMICS Date: Duration ___2_______Hrs. Materials required: Answer booklet: Calculator: (where applicable) √ Programmable □ Normal Numerical Special □ Not Required □ Non Programmable Alphabetical √ Included Multiple Choice Answer
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variables‚ which included one dependent variable that is government expenditure (G) and three independent variables – inflation rate (%)‚ population growth rate (%) and public debts growth rate (%). Our research is to study the relationship between inflation rate‚ population growth rate and public debts growth rate with government expenditure rate. When there are changes in inflation rate‚ population growth rate and public debts growth rate‚ how it would affect the government expenditure (G) to grow
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LARSON INC. SCENARIO OBJECTIVES 1. REVIEW the data provided in the scenario. The data related to America is that the there is growing level of unemployment at 9.9%‚ however‚ the inflation and GDP growth rate are low. In addition‚ the per capita output is declining from $46‚800 in 2007 to $39‚560 in 2008. In addition‚ the Federal Funds Rate and Discount rate are at relatively low rates at 0.25 and 0.50. Compared to Germany at 82.5 million‚ the population of US is fairly high at 305 million. Further
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Macroeconomic objectives Explain the Government’s various macroeconomic objectives and their importance to UK economy. Is it possible for government to achieve all these objectives at the same time? 1. Define macro economics (Compare with micro) 2. Macroeconomic objectives:Assessing importance List :(discuss individual) 1)‚Economic Growth Advantages and disadvantages (and why) (PPF) full use of resource AD=C+I+G+X-M
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BERNANKE Bernanke is particularly interested in the economic and political causes of the Great Depression‚ which he has written about extensively‚ but as I look through the articles written by Bernanke‚ he speaks on a broad range of topics‚ such as inflation‚ unemployment‚ the housing market‚ exchange rates and the monetary policy. As I read each article‚ they all seem to tie in the same message about the economy and how to prosper and grow the country. In Mr. Ben Bernanke first month as chairman
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2012 there is a sudden unanticipated burst of inflation. Consider the situations faced by the following individuals—who gains and who loses? a. A homeowner whose wages will keep pace with inflation during the year‚ but whose monthly mortgage payments will remain fixed. This person has gained. Nominal income is income that you receive in a given time period and it is measured in current dollars. Real income is nominal income adjusted for inflation and is the purchasing power that your money has
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Describe the four types of unemployment. How do the four types differ in their effects on the economy and on the unemployed? Your response should be at least 75 words in length. You are required to use at least your textbook as source material for your response. All sources used‚ including the textbook‚ must be referenced; paraphrased and quoted material must have accompanying citations. Answer Selected Answer: In In general the four types of unemployment are frictional‚ which is when
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