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Indicate whether each of the following creates a demand for, or supply of Euros in foreign exchange markets: (a) An Australian importer purchases a shipload of French wine. (b) A German motor vehicle manufacturer decides to build an assembly plant in Adelaide. (c) An Australian university student decides to spend a year studying at an Irish university. (d) A French manufacturer exports machinery to Morocco on an Australian ship. (e) An Australian government bond held by a Dutch citizen matures.
Mr.O.B.Kandle will live for only two periods .In the first period he will earn $100,000. In the second period he will retire and live on his savings. Mr. Kandle has a Cobb-Douglas utility function U(c1, c2) = c21c2, where c1 is his period 1 consumption and c2 is his period 2 consumption. The real interest rate is r.
Design an anti- recession stabilisation policy, involving both fiscal and monetary policies which is consistent with: (a) A relative decline in the public sector. (b) Greater income equality (c) A high rate of economic growth.
Whats the macroeconomic logic for the existence of a Laffer curve for seignorage and the limits it imposes on monetary and fiscal policy?
Bases on the IS-LM model, analyse the impact of a positive shock to government expenditure, focusing on the response of GDP, consumption, private savings, investment, government budget balance, public debt;
If more Canadians adopted a “live for today” approach to life, how would this affect saving, investment, and the interest rate? /2
Suppose that you study hard, master the principles of economics, and earn a good grade in your economics class. This is an example of a good institution because:
The price of tomatoes increases leading to change in how many are offered for sale. Is this an increase or decrease in supply or an increase or decrease in quantity supplied
The drop in monthly subscription rate changes the number of subscribers to a cable tv provider. Is this an increase or decrease in demand or an increase or decrease in quantity
Whats the main advantage of optimal solution approach (in which its given more utility to consumption today than tomorrow) over the golden rule (in which the utility from consumption its assumed to be equal among the periods) in the maximization consumption problem?
