Using examples specific to tEl Salvador, discuss TWO positive impacts and TWO negative impacts that dollarization could have/is having on the country.
Q: A short-run equilibrium above the potential output means that the unemployment rate is lower than…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: Price and cost (dollars per pair) 150 MC 125- 100 ATC 75- 50+ 25- MR 100 200 300 400 Quantity (pairs…
A: Equilibrium is at the point where MR = MC and MC will be upward rising.
Q: Question 25 Calculate the total change in aggregate spending if investment increases by $200 billion…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In the market for cable TV, the height of the consumer surplus triangle equals Select an answer and…
A: When talking about the consumer surplus, it is the amount of money that an individual is able to…
Q: Consider the production function, f (21, 2) = z} 2. (a) Solve the PMP for factor demands z (p, w1,…
A: Profit is calculated by deducting the total cost of the firm on factors of production from the total…
Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…
A: When the inputs are perfect complements, isoquant is L-shaped.
Q: MARR (Minimum acceptable rate of return) is 12% per year while the re-investment rate is 10% per…
A: A hurdle rate, which is also known as the minimum acceptable rate of return (MARR), is the minimum…
Q: Along any given IS curve: a. government spending is fixed, but tax rates vary. b. tax rates are…
A: IS-LM stands for "investment savings-liquidity preference-money supply," or "investment…
Q: Consider the following data. 14 21 23 21 16 19 24 22 25 16 16 24 25 19 16 19 18 19 21 23 20 12 16 20…
A: A frequency distribution is basically a graphical or tabular depiction of the number of observations…
Q: If interest rates increase in financial markets, then...
A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…
Q: Supply shocks cause short-run aggregate supply (SRAS) to a) decrease in both the short run and the…
A: Supply shocks are kind of unanticipated events which instantaneously causes the commodity to change…
Q: As a result of the 1. ___ economic profit, some firms will 2. ___ the mountain bike industry.…
A: Firm will achieve maximum profit when MR= MC condition will satisfy . By seeing the graph the…
Q: The difference between measuring GDP with the income approach and the expenditure approach is the…
A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…
Q: Q04
A: Profit per ton = Price per ton - Cost per ton Profit per ton = P2750 - P1250 Profit per ton = P1500…
Q: How does the United Nations influence global economic activity
A: The United Nations can be defined as an international organization which was founded in 1945 after…
Q: Plant milk sales in the United States totaled $2.5 billion at the end of 2020, accounting for 15% of…
A: (i) Dairy milk and plant-based milk products are substitute goods because both are considered…
Q: [16] Operating in the short run with one fixed input and one variable input, the marginal product of…
A: (16) Answer: Given Information, Marginal Product (MP) = 10 - X Output price = 3 Variable Price (Let…
Q: If the expected future exchange rate falls, the supply of U.S. dollars and the exchange rate O A.…
A: The measure that depicts the value of one currency being measured in terms of another currency to…
Q: scores from 100 third-grade classes, estimates the OLS regression: TestScore 520.4 – 5.82 x CS, R² =…
A:
Q: please answer in type( not hand written) Explain the income approach to computing GDP in a…
A: The Sum of all the goods and services produced in an economy in an accounting year is GDP (Gross…
Q: Consider a representative agent with the utility function U = ln(Ct)+ Nt The budget constraint is Ct…
A: Utility function : U = ln (Ct) + Nt Budget Constraint : Ct = wNt + Dt Optimal point of consumption…
Q: What are the common characteristic for perfect competition, monopoly and monopolistic competition
A: Market competition refers to the competition that exists between the firms.
Q: Price elasticities of the demand for health care are usually much lower (in absolute terms) at the…
A: Price elasticity of demand shows the responsiveness of change in quantity demanded due to change in…
Q: 7. Which of the following can be considered a cause of cost-push inflation for the UK economy? A.…
A: The answer is as follows:-
Q: What are the possible monetary policy instruments and which one does the Bank of Canada use? The…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: A bank run occurs when a large number of bank customers withdraw their deposits because they believe…
A: Answer is given below
Q: Explain what is illustrated by the production possibilities frontier. Also, why is a production…
A: Production possibility frontier shows the combination of production of two different goods at a…
Q: The U.S. government contributed to the severity of the Great Depression by O a) increasing both the…
A: The actions of The US government and the Federal Reserve contributed to the Great Depression. The…
Q: Jolene indorses the back of a check with the phrase: "without recourse." This makes Jolene a(n)…
A: When a buyer of a promissory note or other negotiable instrument takes the risk of default, they are…
Q: Two lathes are being considered in the manufacture of certain machine parts. Data is given below,…
A: The permissible minimal rate of return, The minimal rate of return on a project that a management or…
Q: A technological advance leads to a shift in O a) both SRAS and LRAS. O b) only aggregate demand…
A: A technology advancement leads to a shift in Correct Answer: Option (a) both SRAS and LRAS This is…
Q: With the aid of a fully labelled diagram, explain the welfare costs of minimum price fixing for…
A: Minimum price:- Whenever the authorities prohibits prices from falling below a stable point, it is…
Q: on in the table to calculate how a 5% increase in the price of Pepsi affe nanded. on in the table to…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: Evaluate the model of Monopolistic Competition. What are the key assumptions? Do you think this…
A: The classification and differentiation of industries being done on the basis of the level of…
Q: Which firms are less sensitive to business cycle? A Only firms with low financial leverage B. Only…
A: Impact of financial gain: Financial gain means the use of borrowed funds as a source of income in a…
Q: 6. Jalapeno Jack is a maximizing worker with preferences U = ZF who has non-labour income of $60 and…
A: In this question, we have been given:- Jalapeno jack is a worker whose preference is U=ZF. He has an…
Q: a. Explain why the aggregate short-run aggregate supply curve is upward sloping? b. What is the…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: What is the role of government in promoting entrepreneurship in the Philippines? Explain one program…
A: Role of government in promoting entrepreneurship in the Philippines Explaination of program by the…
Q: Name a type of market failure and explain why this market failure results in economic…
A: Market failure, in economic aspects, is what is happening characterized by a wasteful conveyance of…
Q: Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of…
A: Aggregate supply refers to the cumulative quantity of a firm's production and selling, or the real…
Q: The Great Recession was similar to other recessions since World War Il in that O a) the rate of…
A: The situation that depicts a massive contraction in activities of the economy and a drastic fall in…
Q: Aggregate supply describes the O a) relationship between suppliers' spending and output. O b)…
A: The aggregate supply curve depicts the relationship between the producer's willingness to supply…
Q: 1. Suppose that the economy can be described by the following equations: C = 400 + (8/9)*DI I = 300…
A: C = 400 + (8/9)*DI I = 300 G = 800 T = (1/2)*Y (X – M) = 0
Q: Back in the 1950s, General Motors (GM) was at its peak. It was widely viewed as a shining example of…
A: The broad types of possible markets in an open economy (i.e. an economy that can trade freely,…
Q: Which of the following policy statements would a Keynesian economist tend to support? Oa Savings is…
A: Keynesian economics is an economic theory that examines the overall expenditure of the economy, as…
Q: 1 shows a domestic market of a gadget. The horizontal axis shows the quantity unt) and the vertical…
A: The consumer surplus is the difference between the maximum price consumer wants to pay and actual…
Q: Based on the belief that prices are fully flexible, classical economists conclude that a) spending,…
A: According to the classical economist, market is a self-correcting because wages and prices are…
Q: Why is trust important in EC transactions? 2- Discuss one of the limitations of m-commerce. What…
A: EC or e-commerce means buying or selling of goods and services over internet rather than physically.…
Q: The annual commissions per salesperson employed by a retailer of mobile communication devices…
A:
Q: Health care expenditures now account for about __________percent of the American GDP.a. 5 c. 16b. 10…
A: In 2020 healthcare expenditure is 19.7 % in America
c. Using examples specific to tEl Salvador, discuss TWO positive
impacts and TWO negative impacts that dollarization could have/is having on the country.
Step by step
Solved in 2 steps
- 17. Problems and Applications Q9 Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. In 2020, a can of Spam cost 4 dollars in Ectenia and 24 pesos in Wiknam. The exchange rate between Ectenian dollars and Wiknamian pesos was Over the next 35 years, inflation is expected to be 2 percent per year in Ectenia and 4 percent per year in Wiknam. If this inflation comes to pass, what will happen over this period to the price of Spam and the exchange rate? Over this period, the price of Spam in Ectenia will double and the price of Spam in Wiknam will quadruple 70 from the chapter "The Basic Tools of Finance.") The exchange rate between the two countries will double Wiknam will likely have a higher nominal interest rate. 6 pesos per dollar. I Which of the following statements explains the flaw in your friend's logic? A friend of yours suggests a get-rich-quick scheme: borrow from the nation with the lower nominal interest rate, invest in the…QUESTION 2 N Consider the exchange rate between U.S. Dollar and Mexican Peso: USD/MXN. If the supply curve for USD shifted from 100+e to 104+eN bln dollars per week and the demand curve shifted from bln dollars per week, then the exchange rate changed by 140-e - eN to 142-eN percent. Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard may automatically delete it and you should not do anything about it. In case of percentages, do not type in the percentage symbol "%". If your answer is a negative number, type a dash in front of your answer, i.e, "-999.99".How did large trade deficits hurt the East Asian countries in the mid 1980s? (Recall that trade deficits are equivalent to inflows of financial capital from abroad.)
- A British pound cost 2.00 in U.S. dollars in 2008, but 1.27 in U.S. dollars in 2017. Was the pound weaker or stronger against the dollar? Did the dollar appreciate or depreciate versus the pound?In the mid- to late 1970s, the yen appreciated in valuerelative to the dollar, even though Japan’s inflation ratewas higher than America’s. How can this be explainedby improvements in the productivity of Japanese industry relative to U.S. industry?2. Explain in details by a diagram how the depreciation of the national currency increases inflation in that particular nation Hint: Depreciation leads to an increase in import and export prices in terms of the national currency.
- When the US Dollar is strong, this means that while US Exporters the US consumers a) find it difficult to compete internationally; see increased prices in imported goods. O b) become internationally competitive; enjoy cheaper imports. Oc) become internationally competitive; see increased prices in imported goods. d) find it difficult to compete internationally; enjoy cheaper imports.Consider the balance-of-payments accounting information for Lalaland in 2010 as shown in the table below. All values are in billions of dollars and any variables not provided below have a value of zero. Exports Imports Net foreign-investment income Capital outflows Capital inflows 500 510 - 40 180 90 What is the net change in the stock of Lalaland's investments abroad in 2010? ..... O A. an increase of $30 billion O B. a decrease of $30 billion OC. a decrease of $50 billion O D. an increase of $50 billion O E. insufficient information to determine18. If more American tourists visit South Africa. The _____________________ of dollars increases and the dollarin the rand/dollar exchange rate _____________________.A Supply; depreciatesB Demand; depreciatesC Supply; appreciatesD Demand; appreciates
- Initially, the exchange rate between Lebanon and Mexico is in equilibrium. Now, assume that there is a decrease in demand for Mexican pesos. As a result of this change, what will happen to Mexican pesos? an appreciation a depreciation no change Furthermore, a decrease in demand for Mexican pesos also results in winners and losers for various groups that are affected by the foreign exchange market. For the group in each example, indicate whether it is a winner or a loser in this change. ____ a tourist from Lebanon going on vacation to Mexico. ____ a mutual fund in Lebanon that purchases bonds in Mexico. ____ a family from Mexico visiting relatives in Lebanon. ____ a small firm in Mexico that sells DoDads in Lebanon. ____ a large firm in Lebanon selling chemicals in Mexico. ____ a multinational based in Mexico purchasing land in Lebanon. Answer Bank: winner, loserZeta Corporation is a Philippine ExportCompany. It sells its goods to the US.Assuming that the BSP prints morePhilippine peso bills, how will thesales of Zetabe affected? A. The decrease in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.B. The increase in money supply will increase the value of each peso, require less peso to get one USD, hence Zeta's sales in peso will decrease.C. The decrease in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.D. The increase in money supply will lower the value of each peso, require more peso to get one USD, hence Zeta's sales in peso will increase.A depreciation of the Canadian dollar will make Canadian goods ________ to foreigners and make imported goods ________ for Canadian residents. Select one: a. more expensive; cheaper b. more expensive; more expensive c. cheaper; cheaper d. cheaper; more expensive