multiple choice
... 8. Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger are incorrect? (A) The merger causes the HHI to increase by 100. (B) The merger causes the four-f ...
... 8. Suppose that there are 10 firms in an industry, each accounting for 10 percent of industry sales. Two of these firms decide to merge. Which of the following statements about the impact of this merger are incorrect? (A) The merger causes the HHI to increase by 100. (B) The merger causes the four-f ...
Macroeconomics
... -"P" is Price Level and "Q" is Output (P x Q = Nominal GDP) -Monetary Rule: Fed should increase money supply by a fixed expected growth rate ...
... -"P" is Price Level and "Q" is Output (P x Q = Nominal GDP) -Monetary Rule: Fed should increase money supply by a fixed expected growth rate ...
EOCT Review Unit One - Mr. Zittle`s Classroom
... What are the three criteria a person must meet in order to be in demand for a product? Explain the law of demandWhat is marginal utility? Explain the concept of diminishing marginal utility. Illustrate the difference in a change in demand and a change in quantity demanded. Explain how income effect ...
... What are the three criteria a person must meet in order to be in demand for a product? Explain the law of demandWhat is marginal utility? Explain the concept of diminishing marginal utility. Illustrate the difference in a change in demand and a change in quantity demanded. Explain how income effect ...
Written up for - Harvard Kennedy School
... The recent trend in the US current account deficit – now at 6 per cent of GDP -- is not sustainable. But the origins are in macroeconomics, not in trade policy. The increase in the current account deficit since 2000 has been due to a fall in US National Saving (Figure 1), which is in turn due to ris ...
... The recent trend in the US current account deficit – now at 6 per cent of GDP -- is not sustainable. But the origins are in macroeconomics, not in trade policy. The increase in the current account deficit since 2000 has been due to a fall in US National Saving (Figure 1), which is in turn due to ris ...
Ch14-- Monetary Policy
... Equation of Exchange: relates quantity of money to nominal GDP M = money supply (some aggregate) – V = velocity of money (of the ...
... Equation of Exchange: relates quantity of money to nominal GDP M = money supply (some aggregate) – V = velocity of money (of the ...
relationship between currency depreciation and output growth in
... There are several major studies examining the impact of currency depreciation or devaluation on output. However the empirical findings of the effects of depreciation on the economy are mixed. Krugman and Taylor (1978) state that one of the conditions for currency devaluation to have a contradictory ...
... There are several major studies examining the impact of currency depreciation or devaluation on output. However the empirical findings of the effects of depreciation on the economy are mixed. Krugman and Taylor (1978) state that one of the conditions for currency devaluation to have a contradictory ...
Finance - Department of Agricultural Economics
... governments to direct the growth of aggregate output and employment. Friedman and other monetarists take issue with Keynesian economists over the active implementation of monetary and fiscal policy to fine tune economy. Milton would prefer an announced steady rate of growth in the money supply. ...
... governments to direct the growth of aggregate output and employment. Friedman and other monetarists take issue with Keynesian economists over the active implementation of monetary and fiscal policy to fine tune economy. Milton would prefer an announced steady rate of growth in the money supply. ...
The IS Curve This lecture describes the relationship between
... b. Financial frictions ( > 0) represent the costs associated with barriers that keep financial markets from functioning efficiently. (Ex., A rise in asymmetric information problems is denoted by a higher .) c. Autonomous investment ( > 0) represents all of the factors besides financial frictions and ...
... b. Financial frictions ( > 0) represent the costs associated with barriers that keep financial markets from functioning efficiently. (Ex., A rise in asymmetric information problems is denoted by a higher .) c. Autonomous investment ( > 0) represents all of the factors besides financial frictions and ...
The Effects of Exchange Controls on the Venezuelan
... term exchange controls and a false security created by controls can postpone necessary reforms to the institutions and government.9 The failure of credit ratings as well as barriers to entry imposed by exchange controls can limit the amount of foreign investment that a country attracts.10 This is e ...
... term exchange controls and a false security created by controls can postpone necessary reforms to the institutions and government.9 The failure of credit ratings as well as barriers to entry imposed by exchange controls can limit the amount of foreign investment that a country attracts.10 This is e ...
Students in International Monetary Economics can choose between
... real conditions (GDP per capita, growth). This was understandable for the original founders but what does it mean for the upcoming wave of accession by countries from Central and Eastern Europe? Should the same criteria apply? Why or why not? Is the lack of real convergence problematic? ...
... real conditions (GDP per capita, growth). This was understandable for the original founders but what does it mean for the upcoming wave of accession by countries from Central and Eastern Europe? Should the same criteria apply? Why or why not? Is the lack of real convergence problematic? ...
Foreign Direct Investment in Romania and the Balkans Joan
... Disinflation and euro weakness have mitigated real appreciation pressures under currency board system since 1997 However, rising price pressures and weaker US dollar against euro in 200607 have suggest real appreciation could place currency board under strain ...
... Disinflation and euro weakness have mitigated real appreciation pressures under currency board system since 1997 However, rising price pressures and weaker US dollar against euro in 200607 have suggest real appreciation could place currency board under strain ...
the failure of oca analysis
... mobility of labor within its borders. Postulating that factors’ mobility is limited to small areas, Mundell concluded that large currency areas couldn’t efficiently handle economic disturbances. The number and size of OCAs should be determined by weighing the benefits of currency unification against ...
... mobility of labor within its borders. Postulating that factors’ mobility is limited to small areas, Mundell concluded that large currency areas couldn’t efficiently handle economic disturbances. The number and size of OCAs should be determined by weighing the benefits of currency unification against ...
Efficient Risk Reducing Strategies by International Diversification
... index data are taken from Morgan and Stanley Capital International, which provide national stock index prices measured in local currencies. Each of the indices is value weighted and could be a representative of an investable domestic stock index fund. To analyse the total returns from the Hungarian ...
... index data are taken from Morgan and Stanley Capital International, which provide national stock index prices measured in local currencies. Each of the indices is value weighted and could be a representative of an investable domestic stock index fund. To analyse the total returns from the Hungarian ...
NBER WORKING PAPER SERIES EXCHANGE RATE FLEXIBILITY AND Jorge Braga de Macedo
... market approaches, reviewed, for example, in Jones and Kenen (1984). While fully consistent with the emphasis on stock equilibria that characterizes both approaches, the model presented below allows us to study the ...
... market approaches, reviewed, for example, in Jones and Kenen (1984). While fully consistent with the emphasis on stock equilibria that characterizes both approaches, the model presented below allows us to study the ...
THE ROLE OF GOVERNMENT IN A MODERN NATIONAL ECONOMY
... inflows affect the financial system, which is doing the intermediate operations. The capital inflows make the fiscal debt increase as a result of sterilization policy that sells high-yielding domestic bonds, and buys foreign exchange earning lower interests. In Latin American countries, estimates of ...
... inflows affect the financial system, which is doing the intermediate operations. The capital inflows make the fiscal debt increase as a result of sterilization policy that sells high-yielding domestic bonds, and buys foreign exchange earning lower interests. In Latin American countries, estimates of ...
Mrs. Thompson`s Notes on Defining, Calculating, and Measuring
... in price (i.e., oil). For all businesses, this creates a situation in which the cost of producing has gone up – so many will choose to produce less. The result of this leftward shift of the supply curve is higher prices for consumers and a rise in the aggregate price level. ...
... in price (i.e., oil). For all businesses, this creates a situation in which the cost of producing has gone up – so many will choose to produce less. The result of this leftward shift of the supply curve is higher prices for consumers and a rise in the aggregate price level. ...
N F O M
... previous stock inherited from the pre-reform era, but mostly contracted in the 1990s in order to finance large off-budget outlays. In contrast to Russia, base money was sound and covered by the currency board reserves. The risk was one of default, not of devaluation. Incredibly, the united chorus of ...
... previous stock inherited from the pre-reform era, but mostly contracted in the 1990s in order to finance large off-budget outlays. In contrast to Russia, base money was sound and covered by the currency board reserves. The risk was one of default, not of devaluation. Incredibly, the united chorus of ...
2 National Income Accounting
... student employment centers. At any time, there are always some people who are unemployed and looking for jobs (they need not be the same people). These people, when expressed as a percentage of the labor force, constitute the unemployment rate. It goes down during booms and goes up during busts. In ...
... student employment centers. At any time, there are always some people who are unemployed and looking for jobs (they need not be the same people). These people, when expressed as a percentage of the labor force, constitute the unemployment rate. It goes down during booms and goes up during busts. In ...
Net capital flows and real exchange rate depreciation effects on the business cycle in emerging market:
... measure the rate between the domestic currency and the foreign currencies in which EMs tend to have denominated their foreign liabilities. Thus, an advantage of using this index is precisely its focus on the real exchange rate between borrowers and lenders, which has been the centre of discussion in ...
... measure the rate between the domestic currency and the foreign currencies in which EMs tend to have denominated their foreign liabilities. Thus, an advantage of using this index is precisely its focus on the real exchange rate between borrowers and lenders, which has been the centre of discussion in ...
Section 38 - Carsonville Port Sanilac
... Now that we have the CPIs for both year 0 and year 1, we can now use the equation on the left to calculate the rate of change in prices. We can see after multiplying the result by 100 that prices have risen by 54%. This percentage tells us that the basket of food and clothing in year 0 costs 54% mor ...
... Now that we have the CPIs for both year 0 and year 1, we can now use the equation on the left to calculate the rate of change in prices. We can see after multiplying the result by 100 that prices have risen by 54%. This percentage tells us that the basket of food and clothing in year 0 costs 54% mor ...
A rise in the price of oil imports has resulted in a decrease of short
... 6. The recessionary gap part of the AD/AS diagram is: a. to the left of QN. b. to the right of QN. c. directly at QN. 7. Which of the following best describes the current U.S. monetary system? a. We have paper money backed by government held gold. b. We have coins made from valuable metals. c. We u ...
... 6. The recessionary gap part of the AD/AS diagram is: a. to the left of QN. b. to the right of QN. c. directly at QN. 7. Which of the following best describes the current U.S. monetary system? a. We have paper money backed by government held gold. b. We have coins made from valuable metals. c. We u ...
Final Exam (100 Points Total)
... demanded only changes by a little then demand at point A is inelastic; and if quantity demanded changes by a proportional amount then demand at point A has unit elasticity. In math If, at point A, the price elasticity of demand is less than −1 (e.g., −2), then demand at point A is elastic; if the el ...
... demanded only changes by a little then demand at point A is inelastic; and if quantity demanded changes by a proportional amount then demand at point A has unit elasticity. In math If, at point A, the price elasticity of demand is less than −1 (e.g., −2), then demand at point A is elastic; if the el ...
Practice Test – Chapters 11,12,13, Multiple Choice Identify the
... Discretionary fiscal policy refers to: A) any change in government spending or taxes that destabilizes the economy. B) the authority that the President has to change personal income tax rates. C) changes in taxes and government expenditures made by Congress to stabilize the economy. D) the changes i ...
... Discretionary fiscal policy refers to: A) any change in government spending or taxes that destabilizes the economy. B) the authority that the President has to change personal income tax rates. C) changes in taxes and government expenditures made by Congress to stabilize the economy. D) the changes i ...
Michael D. Bordo and AnnaJ. Schwartz TRANSMISSION OF REAL AND MONETARY
... current account of the balance of payments with effects on relative prices, output, and income, and by capital flows induced by interest rate differentials that establish interest rate equality except for differences in risk premia, taxes, or transaction costs. Foreign exchange rate arrangements tra ...
... current account of the balance of payments with effects on relative prices, output, and income, and by capital flows induced by interest rate differentials that establish interest rate equality except for differences in risk premia, taxes, or transaction costs. Foreign exchange rate arrangements tra ...
Exchange rate
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In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119.Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin (or profit) in trading, or else the margin may be recovered in the form of a commission or in some other way. Different rates may also be quoted for cash (usually notes only), a documentary form (such as traveler's cheques) or electronically (such as a credit card purchase). The higher rate on documentary transactions has been justified to compensate for the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.