Econ 371: Answer Key for Problem Set 1 (Chapter 12-13) Instructor: Kanda Naknoi September 14‚ 2005 1. (2 points) Is it possible for a country to have a current account deficit at the same time and has a surplus in its balance of payments? Explain your answer using hypothetical figures. ANSWER: (1 point) Yes. The balance of payments (BoP) is the sum of current account (CA)‚ capital account (KA) and financial account (FA). Theoretically‚ because of the double-entry bookkeeping practice‚ the sum
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sale‚ and (c) equilibrium value of th Canadian dollar? f the C di d ll ? Assuming no effect on U.S. interest rates‚ demand for dollars should increase‚ Supply of dollars for sale may not be affected‚ and The dollar’s value should increase. Trade Restriction Effects on Exchange Rates • Assume that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal‚ how should this affect the (a) U.S. demand for Japanese yen‚ (b) supply of yen for sale‚ and
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Economic Critique Learning Team A ECO/372 August 28‚ 2013 Maintaining a stable economy is no small challenge for any nation however possessing the ability to change and invent new and created ways of maintaining makes for a thriving economy. This newsletter will summarize the different economic factors that affect aggregate demand and supply such as unemployment‚ expectations‚ consumer income‚ and interest rates within the United States. Additionally‚ what fiscal policies are recommended by the
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Be Intelligent—Identify the Stakeholders You’ve identified the issue‚ and your ultimate goal is to take an action that will solve or address that issue. But we can’t skip right to the end just yet! Before thinking about the solution‚ consider the other people in the situation. Your decision—even if that decision is to do nothing—will have an effect on some people. We call these people the stakeholders. Like a pebble hitting the water‚ our actions have consequences that ripple out from the
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Reflection-Economic Forecasting ECO/372 June 3‚ 2013 Historical and forecast economic data can be obtained from various locations. The Internet grants access to several sites that provide tools for the individual to collect the data. One must choose which site provides the required information needed to support the facts. In the following paragraphs‚ team B has supplied various resources where historical and forecast economic data can be obtained and a summary explaining
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Analyze and comment about RCA of Vietnam based on data from Trade Map in 2012. Contents Introduce about RCA Analyse of some VN’s industries Evaluation of statistics Case study of Rice: RCA of Vietnam Rice in comparision with Thailand Introduction Coefficient of Revealed Comparative Advantage (RCA). • Represent comparative advantage or disadvantage of a certain country in a certain goods or services. • It is based on the Ricardian comparative advantage concept. EX1 : Export value of commodity
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ECO/ 372 Week 1 Knowledge Check 1.The two frameworks conventional economists generally use to analyze macroeconomic issues are A.the inflation and the unemployment frameworks B.the short-run and the long-run frameworks C.the business cycle and the growth cycle frameworks D.the stagnationist and the Post-Keynesian frameworks 2.The relationship between real and nominal interest rate can be expressed by A.real interest rate = nominal interest rate + inflation B.real interest rate = inflation - nominal
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FIN370 International Financial Management Chapter 10‚ 11‚ 12 Foreign Exposure - Practice Questions 1. Economic exposure refers to: A) the exposure of a firm’s ongoing international transactions to exchange rate fluctuations. B) the exposure of a firm’s financial statements to exchange rate fluctuations. C) the exposure of a firm’s cash flows to exchange rate fluctuations. D) the exposure of a country’s national economy to exchange rate fluctuations. 2. Which of the following statement
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INTERNATIONAL TRADE PAYMENT AND FINANCE WITH SPECIAL REFERENCE TO BANGLADESH In International trade payments‚ the most important participants are exporters and importers. Here exporters are sellers and importers are buyers. Importers and exporters are quite often confront with problems arising from the movements of goods from one country to another and are simultaneously subject to the different legislation‚ customs and practices of these countries. Importers and exporters have certain concerns
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Economics 1 Economics Shane Hadaller ECO/372 October 24‚ 2010 Ms. El Hag Economics 2 Economics Economics plays a key role in the business world. There are many different terms used in the business world that not everyone understands. These terms actually apply to everyday life in households and everyday activities. There are events that happen that can affect each other‚ these events are put together into a flow diagram and can illustrate the interaction
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