Download file to see previous pages...
Q1 (II): considering that the ratio of trade is 1:1 and that north is more efficient in producing both left and right shoes as compared to the south, the north will consume 70 pairs of shoes. That is, the north would rather not trade. On the other hand, with no increase in the number of workers in the south, they can only consume one pair of shoes if they give up one-left shoes for one right shoe (Miles & Scott 15-72).
Q1 (III): assuming that there still are 10 workers in the North, the new exchange rate will be (300:3000), (100:1000) = 1:10. Therefore, the North could decide to exchange 30 left shoes for 300 right shoes. In this case, the number of pairs of shoes consumed will be 300 (Miles & Scott 15-72).
Q2: the Federal reserve governor meant that in the year 2005, the payment made by the U.S for importing services and other visible and invisible goods were more than those received; leading to a current account deficit. In the process, the value of US currency decreased making U.S products cheaper in the international market. A decreased U.S currency means an increase in the value of foreign currencies leading to low foreign prices, thus low interest rate in the long-run (Arize 35-67).
Q3: when the Government’s purchases increase during a war, consumption is concentrated on ammunitions. The country will heavily import the war machines than exports. This will lead to a deficit in trade account (a negative balance). To pay for the imported machines, more local currency will be supplied in the foreign exchange market than is demanded. Due to more supply than demand, the local currency will lose its value. The decreased value will be reflected in the exchange rate. Therefore, the real exchange rate will be lower. That is, the real price of the local currency against foreign currencies will be lower. The aforementioned effects would take place, whether a local or a
...Download file to see next pagesRead More
Cite this document
(“HOMEWORK Essay Example | Topics and Well Written Essays - 750 words - 1”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1631856-homework
(HOMEWORK Essay Example | Topics and Well Written Essays - 750 Words - 1)
“HOMEWORK Essay Example | Topics and Well Written Essays - 750 Words - 1”, n.d. https://studentshare.org/macro-microeconomics/1631856-homework.
They have some subjects that are easy for them and others that are very difficult. When they have to take work home, it takes away from the opportunity to rest and relax. All children need the opportunity to move away from school and do something
nification of the people and emergence of civil society, its effects helped the women to gain social status, it helped the slaves to gain confidence and it drastically affected the native population in America.
The wartime experiences of the American Revolution are closely
During PCR, the sought-after DNA is given a thermal shock which leads to opening of the strings. The strings are then provided the amino acids that they require to build another string. This is how PCR works. Using this procedure, millions and trillions of copies of DNA
Under the new law, John Adams had allotted “Midnight Judges” so that Federalists could take control over the federal judiciary before Thomas Jefferson. This action was an effort to impasse the Democratic Republicans. But in order to take effect of the new
Analyzing every transaction in relation to its effects on the accounts; this step requires that there have to be document showing an accounting transaction has occurred. That is the source document, which is the basis of an
In order to reduce the rate of unemployment from 8.2% to a lower rate, the government requires increasing its spending and lowering the rates of taxation. Through lowering the rate of taxation, individuals will be capable of borrowing at low rates,
The batch size would therefore comprise of the average number of times that it would add up to form the average inventory. The need is to find out how average inventory is formed up since the batch size may or may not be changed at
As a result, a person may not exhibit good leadership traits due to lack of exposure, skills or experiences to manage an organization.
The five important personality traits considered during job applications entail conscientiousness,
Despite living a pleasant life during the pre-revolution period, all the blissful pleasantries he was enjoying came to an end. His life totally changed to be a miserable one. Shortly after leaving the battlefield, he faced a series of
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic HOMEWORK for FREE!