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- As the price of tickets rises from 200 to 250, what is the price elasticity of demand for business travelers and vacationers?
Distinguish between “Structural unemployment” and “cyclical (demand deficiency) unemployment
SF in Zurich: 1.6000-35 SF/1$
£ in NY: 1.9810-50 $/1 £
I) as a banker in London you would like to quote a £ cross-rate for the SF (i.e, £/1SF). If you anticipate to be the sole banker in the world quoting this cross-rate, what is your quote going to be? Explain
ii) Now suppose that you have operating cost of 0.05% of volume. Would this affect your answer? Show your work
iii) suppose one of your competitors in London quotes the following: 0.3160-80 £/1SF. Assume that you can trade with him up to a maximum of $2,000,000. Could you take advantage of that competition? Is there any risk of doing so?
SF in Zurich: 1:6000 - 35SF/1$
£ in NY: 1:9810 - 50$/1 £
I) As a banker in London you would like to quote a £ cross-rate for the SF (i.e, £/1SF). If you anticipate to be the sole banker in the world quoting this cross-rate, what is your quote going to be? Explain
[P=PE(1+m)(1-au+z)
Question 4 (Marks: 25)
Conduct your own research on the current state of the South African economy in terms of the five main macroeconomic objectives. Write a paragraph for each macroeconomic objective in which you detail your findings.
(Hint: You must provide accurate information based on your research and as far as
possible, specify numerically the current status quo with regards to each of the macroeconomic objectives.)
ou are given the data below for 2008 for the imaginary country of Amagre, whose currency is the G.
Consumption 350 billion G
Transfer payments 100 billion G
Investment 100 billion G
Government purchases 200 billion G
Exports 50 billion G
Imports 150 billion G
Bond purchases 200 billion G
Earnings on foreign investments 75 billion G
Foreign earnings on Amagre investment 25 billion G
Compute net foreign investment.
Compute net exports.
Compute GDP.
Compute GNP.
In addition to responding with a quantitative answer, briefly describe how you arrived at your answers.
An expansionary fiscal policy would most likely cause which of the following changes in output and interest rates?
Both output and interest rate will decrease.
Output will increase and interest rate falls.
Both output and interest rate will increase.
Output will fall and the interest rate increases.
The supply-side effects of fiscal policy in the AD-AS model shows, that an increase in the marginal tax rate on labour income will do the following:
Increases potential GDP because people work more as they have less disposable income.
Increase the incentive to work.
Increase the equilibrium quantity of labour as firms demand more workers at the lower wage.
Decreases potential GDP.
#339914 on Dec 2023