Business, 21.05.2021 17:40 Jack2019

It is 2020. Suppose that the new chairman of the Federal Reserve, Jared Kushner, decides that he would like the value of the Dollar to fall. Suppose also that prices are sticky in the short run but perfectly flexible in the long run. There is no expectation of long run price level stability. Suppose Jared increases the US money supply Required:
a. What are the long and short run effects of the value of the dollar? On US interest Rates? On the US price level.
b. Suppose there is one other economy in the world, the Euro. Could the European authorities take action that would offset the effects of American monetary policies on the value of the dollar? In your answer to b. you need only consider the long run.
c. Arising from your answer in b. what problem do you see with any US attempts to depreciate the dollar?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:00, lin550

Throne technical university is looking for three people to work in its plant-biology laboratory. the hiring manager is finding that the most suitable job candidates live in other countries and are not willing to move to the city where the university is located. which situation is the university facing? a. lack of flexible workforce b. surpluses in labor talent c. an appearance of quota systems d. deficits in minimum wage demands

Answers: 1

continue

Business, 22.06.2019 11:40, derrion67

During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million

Answers: 1

continue

Business, 22.06.2019 19:20, kimmosley80

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. during 2003, an auction house sold a sculpture at auction for a price of $10,211,500. unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,177,500. what was his annual rate of return on this sculpture? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as

Answers: 2

continue

Business, 22.06.2019 20:40, chelsea73

Owns a machine that can produce two specialized products. production time for product tlx is two units per hour and for product mtv is four units per hour. the machine’s capacity is 2,100 hours per year. both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 3,570 units of product tlx and 1,610 units of product mtv. selling prices and variable costs per unit to produce the products follow. product tlx product mtv selling price per unit $ 11.50 $ 6.90 variable costs per unit 3.45 4.14 determine the company's most profitable sales mix and the contribution margin that results from that sales mix.

Answers: 3

continue

You know the right answer?

It is 2020. Suppose that the new chairman of the Federal Reserve, Jared Kushner, decides that he wou...