Assume that the lm curve for a small open economy with a floating exchange rate is given by y=200r-200+2(m/p),while the is curve is y=400+3g-2t+3nx-200r. the function for nx is nx=200-100e, where e is the exchange rate. the price level(p) is fixed at 1.0. the international interest rate is r=2.5 percent.

a. using the lm curve, find the equilibrium level of y in the small open economy, if m:

b. given this value of y, if g=100 and t=100, what must be the equilibrium value of

c. if this value of nx is to be achieved, what must be the equilibrium exchange rate, e?

Oliver's company is planning the launch of their hybrid cars. the company has included "never-before-seen" product benefits in the hybrid cars. which type of advertising should oliver's company use for the new cars?

Which stage of group development involves members introducing themselves to each other?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?